County Down directors agree to disqualification

The Department of Enterprise, Trade and Investment (the Department) has accepted a disqualification undertaking for seven years from Robert Nathaniel Peden (52) of Ballymiscaw Road, Holywood, County Down, in respect of his conduct as a director of Moulton Limited.

The Department has also accepted a disqualification undertaking for six years from Mary Josephine Peden (52) of Ballymiscaw Road, Holywood, County Down, in respect of her conduct as a director of the same company.

Moulton Limited carried on the business of road transport from Kiltonga Industrial Estate, Belfast Road, Newtownards and went into liquidation on 12 January 2006 with assets of £11,833; liabilities of £637,256 and an estimated deficiency as regards creditors of £625,423. After taking into account the losses incurred by members (shareholders, including the directors) of the company the total deficiency was £625,425.

In cases where a director offers a disqualification undertaking acceptable to the Department, thus avoiding a full hearing of the matter before the court, a shorter period of disqualification than would otherwise be appropriate is normally imposed.

The Department accepted the disqualification undertakings from Robert Nathaniel Peden and Mary Josephine Peden on 13 September 2007 based on the following unfit conduct which solely for the purposes of the disqualification procedure was not disputed:

• Causing the Company to trade to the detriment of Crown creditors, during the period from 4 June 2003 to 12 January 2006, at a time when they knew or ought to have known that it was insolvent;
• Retaining a total of £468,981.84 properly payable to the Crown in respect of PAYE, NIC and VAT;
• Failing to pay £32,300.27 properly due to the Crown in respect of Corporation Tax;
• Misusing the company’s bank account with the Northern Bank in that during the period 3 February 2004 to 20 January 2006, 252 cheques to the value of £744,860.93 were dishonoured and in the period 3 February 2004 to 22 December 2005, 38 direct debits were dishonoured to the value of £26,335.56;
• Failing to file Annual Accounts for the years ending 30 June 1995 and 30 June 1996 and failing to prepare and file accounts for the eight years ended 30 June 1997 to 30 June 2004 with the Registrar of Companies;
• Failing to file Annual Returns for the periods ended 14 June 2000 to 14 June 2005 inclusive with the Registrar of Companies;
• Failing to maintain and deliver up statutory records for the Company.
• The following are additional matters of unfit conduct on the part of Robert Nathaniel Peden which solely for the purposes of the disqualification procedure was not disputed by him:
• Failing to learn from previous insolvency in that he also neglected personal tax affairs in the years leading up to his bankruptcy;
• Failing to co-operate fully with the Official Receiver;

The Department has accepted nine Disqualification Undertakings and the Court has made six Disqualification Orders in the financial year commencing 1 April 2007.

Notes to Editors:

1. Robert Nathaniel Peden and Mary Josephine Peden are husband and wife.
2. The Official Receiver, when a company is wound up by the Court, has a duty to investigate the causes of failure and report any unfit conduct to the Insolvency Service within the Department of Enterprise, Trade and Investment.
3. The aim of the Department is to bring disqualification proceedings against those partners and officers of failed partnerships. The legislation contained in the Company Directors Disqualification (Northern Ireland) Order 2002 modified in the case of partnerships in accordance with the Insolvent Partnerships (Amendment No 2) Order (Northern Ireland) 2003 is for the protection of the public and trading community but its operation should not inhibit genuine enterprise.
4. Article 9 of the modified 2002 Order provides that where an officer of a partnership is found to be unfit he must be disqualified for a minimum period of two years, up to a maximum of fifteen years. The Courts have decided that the level of seriousness of unfit conduct can fall into three brackets with the top bracket of periods over ten years reserved for particularly serious cases, six to ten years reserved for cases which do not merit the top bracket and two to five years for cases where, although disqualification is mandatory, the case is less serious.
5. The modified 2002 Order also allows an officer of a partnership, with agreement of the Department to avoid the need for a court hearing by offering an acceptable disqualification undertaking. This has exactly the same legal effect as a disqualification order made by the court, and will usually include a schedule identifying the officer’s unfit conduct. The consequences of breaching a disqualification undertaking are the same as those for breaching a disqualification order.
6. If anybody contravenes a disqualification order or breaches their disqualification undertaking they may be committing a criminal offence and could go to prison for up to two years or face a fine or both. Any person with information to suggest that a disqualified person has acted in contravention of this provision should contact The Insolvency Service’s Directors Disqualification Unit on 02890 548516.
7. The period of disqualification commences at the end of 21 days beginning with the day the Disqualification Undertaking was accepted by the Department.
8. For media enquiries please contact the DETI Press Office, telephone 028 9052 9297.
9. Outside office hours, please contact the Duty Press Officer via pager number 07699 715 440 and your call will be returned.