Belfast Director agrees to disqualification

The Department of Enterprise, Trade and Investment (the Department) has accepted a disqualification undertaking for 7 years from Timothy Laurence Wilkinson (50) of Ormiston Crescent, Belfast, in respect of his conduct as a director of Professional Surface Protection Systems Limited (“the Company”).

The Company carried on the business of providing surface protection and grafitti removal products and services from Nottingham, Belfast and London and went into liquidation on 22 November 2007 with estimated assets of £500, liabilities of £56,275 to non preferential creditors and an estimated deficiency as regards creditors of £55,775. After taking into account the losses incurred by members (shareholders, including the directors) of the company the total estimated deficiency was £55,776.

The Department accepted the disqualification undertaking from Timothy Laurence Wilkinson on 17 June 2010 based on the following unfit conduct which solely for the purposes of the disqualification procedure was not disputed:

• failing to fully co-operate with the Official Receiver in contravention of Article 199(2) of the Insolvency (Northern Ireland) Order 1989 in that he failed to attend the Official Receiver’s office to complete his Preliminary Examination interview and he failed to provide a statement and deliver up information, documentation and the accounting records of Professional Surface Protection Systems Limited, as requested;
• failing to properly account to the Official Receiver or his agent for all company assets;
• failing to pay £7,944.41 properly due to the Crown, being VAT of £5,024.34 for the year 2004/05 and £2,920.07 for the year 2005/06;
• causing and permitting the Company to fail to comply with Article 291 of the Companies (NI) Order 1986 which states every company shall have a company secretary;
• failing to comply with Articles 371(1) and 371(2) of the Companies (NI) Order 1986 in that Annual Returns were not filed for the years ended 29 November 2004 and 29 November 2005;
• failing to comply with Article 235 of the Companies (NI) Order 1986 in that accounts for the year ended 30 November 2004 were not filed with Companies Registry.     

The Department has accepted 12 Disqualification Undertakings and the Court has made an order disqualifying one director in the financial year commencing 1 April 2010.

Notes to editors:

1. 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.
2. The aim of the Department is to bring disqualification proceedings against those directors of failed companies who have abused the privilege of limited liability status through negligence, incompetence or lack of commercial probity.  The legislation contained in the Company Directors Disqualification (Northern Ireland) Order 2002 (“the 2002 Order”) is for the protection of the public and trading community but its operation should not inhibit genuine enterprise.
3. In cases where a person is subject to either a Disqualification Order made by the Court or a Disqualification Undertaking accepted by the Department, that person shall not be a director of a company, act as a receiver of a company's property or in any way, whether directly or indirectly, be concerned or take part in the promotion, formation or management of a company unless he has the leave of the High Court.  A disqualified person cannot obtain permission to act as an Insolvency Practitioner.
4. Article 9 of the 2002 Order provides that where a director 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 2002 Order also allows directors, with the 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 director’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 2 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 028 90 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 contact DETI Press Office on 028 90529604.