A HUSBAND and wife from Armagh have been disqualified from operating as directors after their company went into liquidation with liabilities that were more than £1 million in excess of assets.
Thomas Curran (62) and his wife Bernadette (61), of Black-watertown Road, Armagh, are disqualified for nine and six years respectively, arising from their operation of Curran Environmental Recycling Ltd, of which they were both directors, the UK's department of enterprise, trade and investment said yesterday.
Both made disqualification undertakings to the department, which were accepted. 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 said.
Curran Environmental Recycling carried on the waste disposal, recycling and transport business from 91 Moy Road, Ballyfodrin, Portadown, and went into liquidation on June 6th, 2005, with assets of £414,000, liabilities of £1,552,219 and an estimated deficiency on creditors of £1,138,219.
The department accepted the disqualification undertaking from the two directors based on unfit conduct which, solely for the purposes of the disqualification procedure, was undisputed. The unfit conduct comprised the following:
Causing and permitting the company to trade from May 31st, 2003, at the latest, when they knew or ought to have known it was insolvent;
Causing and permitting the company to be financed by the retention of £739,878.82 properly due to the Crown, comprising outstanding income tax and insurance contributions for 2003/2004 to 2005/2006 of £385,187.43 and VAT for the periods 2003/2004 to 2005/2006 of £354,691.39;
Causing and permitting the company to misuse an account in the Northern Bank from June 2003 to May 2004, in that charges of £2,470 were incurred in respect of unpaid direct debits and standing orders; and to misuse an account in Ulster Bank, in that from April 2004 to June 2005, 103 cheques totalling £513,259.24 were tendered to creditors without due regard to the prospect of them being honoured; and
Failing to prepare a profit and loss account and balance sheet for each financial year as required under Article 235 of the Companies (NI) Order 1986.
Additional matters of unfit conduct, alleged by the department in relation to Thomas Curran, which were not disputed solely for the purposes of the disqualification procedure were:
Failing to account for £63,400.34 of monies grant-aided to the company by Invest NI; and
Misusing his director's loan account and thereby placing a significant financial burden on the company and failing to act in the best interests of the company.
