28 March 2008 - Gilford and Dublin Directors agree to disqualification

The Department has also accepted a disqualification undertaking for six years from Rose Ann Mackin, (55) of the same address in respect of her conduct as a director of the same company.

The Department has also accepted a disqualification undertaking for three years from Colum (Colm) Mackin, (24) of Leinster Road, Rathmines, Dublin in respect of his conduct as a director of the same company.

MIR Express Limited carried on the business of haulage from Blue Road, Gilford and went into liquidation on 1 December 2004 with assets of £5,489, liabilities to preferential and non preferential creditors of £270,304 and an estimated deficiency as regards creditors of £264,815. After taking into account the losses incurred by members (shareholders, including the directors) of the company the total deficiency was £264,816.

The Department accepted the disqualification undertakings from Patrick James Mackin, Rose Ann Mackin and Colum (Colm) Mackin on 26 February 2008, based on the following unfit conduct which, solely for the purposes of the disqualification procedure, was not disputed:

• Causing and permitting MIR Express Limited to be financed by the retention of £109,428.30 of debts properly payable to the Crown comprising outstanding PAYE and NIC for the periods 2002/03 and 2003/04 of £20,645.63 due to the Commissioners of Inland Revenue, and monies due to H M Customs & Excise in respect of VAT for the periods 2002/03 and 2003/04 of £88,782.67;
• Causing and permitting MIR Express Limited to misuse accounts with the Ulster and First Trust banks in that:
• 14 cheques totalling £28,607.93 were dishonoured on MIR Express Limited's account at the Ulster Bank, Tandragee during the period November 2001 to April 2002, 19 direct debits & standing orders were dishonoured and 31 fees and charges amounting to £848.00 were incurred during the period November 2001 to June 2002;
• 12 cheques totalling £77,172.15 were dishonoured on MIR Express Limited's account at the First Trust Bank, Banbridge during the period April 2002 to April 2003, 31 direct debits and standing orders amounting to £117,480.18 were dishonoured, during the period June 2002 to October 2003 and 102 fees and charges amounting to £2,154.50 were incurred during the period April 2002 to Oct 2003;
• 7 cheques totalling €103,557.38 were dishonoured on MIR Express Limited's Euro account at First Trust Bank, Banbridge during the period June 2003 to Jan 2004 and 20 fees and charges amounting to €914.00 were incurred during the period August 2002 to January 2004;
• 9 cheques totalling £6,884.49 were dishonoured on MIR Express Limited's account at Ulster Bank, Rathfriland during the period December 2003 to January 2004, one direct debit for £4352.79 was dishonoured on 24 November 2003 and 28 fees and charges amounting to £673 were incurred during the period August 2003 to January 2004.
• Failing to maintain the Statutory Records for MIR Express Limited as required under the Companies (NI) Order 1986.

The following is an additional matter of unfit conduct, alleged by the Department in relation to Patrick James Mackin and Rose Ann Mackin which solely for the purposes of the disqualification procedure was not disputed:

• Failing to learn from the previous insolvency of Mackin International Transport Limited.

The Department has accepted 22 Disqualification Undertakings and the Court has made Orders disqualifying 18 directors in the financial year commencing 1 April 2007.

Notes to Editors:

1. Patrick Mackin and Rose Ann Mackin are husband and wife and Colum (Colm) Mackin is their son.
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 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.
4. 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.
5. 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.
6. 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.
7. 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.
8. The period of disqualification commences at the end of 21 days beginning with the day the Undertaking was accepted by the Department.
9. For media enquiries contact DETI Press Office on 028 9052 9604. Outside office hours, please contact the Duty Press Officer via pager Number 07699 715 440 and your call will be returned.