22 February 2008 - Omagh director agrees to disqualification

All-Star Print Limited (the Company) carried on the business of producing a magazine called Teamtalk, GAA diaries, GAA calendars and programmes for the GAA Tyrone County Board from May 2001 from 8 Sperrin View, Loughmacrory, Omagh and went into liquidation on 9 June 2005 with assets of £451, liabilities of £147,268 and an estimated deficiency as regards creditors of £146,817. After taking into account the losses incurred by members (shareholders, including the directors) of the Company the total deficiency was £146,819.

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 undertaking from Kenneth Anthony Curran on 24 January 2008 based on the following unfit conduct which solely for the purposes of the disqualification procedure was not disputed:

• Causing and permitting the Company to trade from 31 May 2003 to 31 May 2004 at the latest, at a time when he knew, or ought to have known, the Company was insolvent.
• Failing to exercise proper financial control over the affairs of the Company.
• Causing and permitting the Company to be financed by the non payment of £25,267.76 properly payable to the Crown comprising outstanding PAYE and NIC for the period 2003/2004, and outstanding VAT for the periods 2002/2003, 2003/2004 and 2004/2005 due to HM Revenue & Customs.
• Causing and permitting the Company to misuse the Company bank accounts with First Trust Bank, Ulster Bank and Bank of Ireland. With regard to First Trust Bank six cheques with a total value of £2,687.49 were dishonoured during the period 29 November 2001 to 19 September 2002 and 33 direct debits and standing orders with a value of £5,496.30 were dishonoured on the same account in the period 19 September 2002 to 14 February 2003. Ninety-three cheques with a value of £39,008.00 were dishonoured on the company's Ulster Bank account during the period 5 February 2003 to 3 March 2004 and six direct debits and standing orders with a value of £1,135.40 were dishonoured on this account during the period 20 March 2003 to 20 April 2004. On 14 January 2004 one cheque in the sum of £2,121.36 was dishonoured on the Company's bank account at Bank of Ireland.
• Causing and permitting the Company to make preference payments totalling £36,644 to the detriment of other creditors.
• Failing to prepare or file with Companies Registry annual accounts for years ended 4 May 2002, 2003 and 2004.
• Failing to file annual returns with Companies Registry for the years to 4 May 2002 and 2003 within the prescribed time period and failing to file the annual return for the year to 4 May 2004.

The Department has accepted 16 Disqualification Undertakings and the Court has made Orders disqualifying a total of 18 directors in the financial year commencing 1 April 2007.

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 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 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 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.