Howard Holland (48) of Les Hubits, St Martins, Guernsey was disqualified for seven years on the 31 May 2007 in the High Court Belfast in respect of his conduct as a director of the same company.
C.I. Restaurants (Ireland) Limited carried on the business of a restaurant from Linenhall Street, Belfast and went into liquidation on 1 September 2004 with assets of £29,852; liabilities of £512,567 and an estimated deficiency as regards creditors of £482,715. After taking into account the losses incurred by members (shareholders, including the directors) of the company the total deficiency was £482,717.
The matters of unfit conduct alleged by the Department of Enterprise, Trade and Investment (the Department) in relation to Martin Rogan in respect of his conduct as a director of C.I. Restaurants (Ireland) Limited and accepted by the Court included:
- Causing the Company to be financed by non-payment of £284,225 of monies properly payable to the Crown, in respect of PAYE, NIC and VAT;
- Failing to learn from previous experience in that he was the director of two other failed companies that were also financed by £373,290 of monies properly payable to the Crown;
- The matters of unfit conduct alleged by the Department in relation to Howard Holland in respect of his conduct as a director of C.I. Restaurants (Ireland) Limited and accepted by the Court included:
- Causing the Company to be financed by non-payment of £284,225of monies properly payable to the Crown, in respect of PAYE, NIC and VAT;
- Failing to learn from previous experience in that he was the director of another failed company that was financed by £72,808 of monies properly payable to the Crown.
In his Judgement Master Redpath stated that the total Crown debt of £657,515 from these three failed companies was a not insignificant sum and that this was all money the company had taken from others and not paid to the Crown as it was due in law to do, and placed this case in the serious category of such cases.
The Department has accepted 16 Disqualification Undertakings and the Court has made Orders disqualifying a total of 14 directors in the financial year commencing 1 April 2007.
Notes to Editors:
- Insolvency Practitioners acting as voluntary liquidators, administrative receivers and administrators have a duty to report unfit conduct to the Insolvency Service within the Department of Enterprise, Trade and Investment.
- 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.
- 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.
- 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.
- 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.
- The period of disqualification commences at the end of 21 days beginning with the day the Order was made by the Court.
- For media enquiries please contact the DETI Press Office, telephone 028 9052 9297. Outside office hours, please contact the Duty Press Officer via pager number 07699 715 440 and your call will be returned.
