Neil Donnelly (47) of Lisraw Highway, Scarva, Craigavon was disqualified for 9 years on 5 Could 2022, within the Excessive Court docket, Belfast in respect of his conduct as a director of Donnelly Transport Restricted- In liquidation (“the Firm”).
Director disqualified
The Firm operated as freight transport by highway and went into Administration on 21 September 2018 with an estimated deficiency as regards collectors of £922,649. The corporate subsequently went into Liquidation on 16 December 2020. There was a complete of £100 owing as Share Capital, leading to an estimated deficiency as regards members of £922,749.
The issues of unfit conduct alleged by the Division in relation to Neil Donnelly in respect of his conduct as a director of the Firm and accepted by the Court docket have been:
Inflicting and allowing the misuse of the bill discounting facility by elevating “contemporary air” invoices with a purpose to draw cash from Shut Bill Finance Restricted when there was no underlying transactions or worth connected to them, thereby inflicting a loss to Shut Bill Finance Restricted of £193,159.30;
Failing to co-operate with the administrator/liquidator by not offering a accomplished director’s questionnaire or submitted an announcement of affairs for the corporate in contravention to Article 199 of the Insolvency (Northern Eire) Order 1989. In consequence, the administrator/liquidator was not supplied with ample background into the Firm affairs and the property and liabilities as on the date of winding up, leading to a frustration of the administration and liquidation processes.
The Court docket has made one Disqualification Order within the monetary 12 months commencing 1 April 2022
Notes to editors:
Insolvency Practitioners performing as voluntary liquidators, administrative receivers and directors have an obligation to report unfit conduct to the Insolvency Service inside the Division for the Financial system.
The goal of the Division is to convey disqualification proceedings towards these administrators of failed corporations who’ve abused the privilege of restricted legal responsibility standing by means of negligence, incompetence or lack of business probity. The laws contained within the Firm Administrators Disqualification (Northern Eire) Order 2002 (“the 2002 Order”) is for the safety of the general public and buying and selling group however its operation mustn’t inhibit real enterprise.
In circumstances the place an individual is topic to both a Disqualification Order made by the Court docket or a Disqualification Endeavor accepted by the Division, that particular person shall not be a director of an organization, act as a receiver of an organization’s property or in any method, whether or not straight or not directly, be involved or participate within the promotion, formation or administration of an organization except he has the depart of the Excessive Court docket. A disqualified particular person can not acquire permission to behave as an Insolvency Practitioner.
Article 9 of the 2002 Order gives that the place a director is discovered to be unfit he should be disqualified for a minimal interval of two years, as much as a most of fifteen years. The Courts have determined that the extent of seriousness of unfit conduct can fall into three brackets with the highest bracket of intervals over ten years reserved for notably severe circumstances, six to 10 years reserved for circumstances which don’t advantage the highest bracket and two to 5 years for circumstances the place, though disqualification is necessary, the case is much less severe.
The 2002 Order additionally permits administrators, with the settlement of the Division, to keep away from the necessity for a courtroom listening to by providing a suitable Disqualification Endeavor. This has precisely the identical authorized impact as a Disqualification Order made by the courtroom, and can often embody a schedule figuring out the director’s unfit conduct. The results of breaching a Disqualification Endeavor are the identical as these for breaching a Disqualification Order.
If anyone contravenes a Disqualification Order or breaches their Disqualification Endeavor they might be committing a felony offence and will go to jail for as much as two years or face a positive or each. Any particular person with data to recommend {that a} disqualified particular person has acted in contravention of this provision ought to contact The Insolvency Service’s Administrators Disqualification Unit on 028 90 548582.
The interval of disqualification commences on the finish of 21 days starting with the day the Disqualification Endeavor was accepted by the Division.
For media enquiries contact the Division for the Financial system Press Workplace at pressoffice@economy-ni.gov.uk .
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