County Londonderry Directors agree to disqualification

The Department for the Economy (the Department) has accepted disqualification undertakings from the Directors of a utilities installation business. The undertakings were received for five years from Neil Doherty (42) and Sinead Doherty (44), both of Deerpark Road, Magherafelt in respect of their conduct as...

The Department for the Economy (the Department) has accepted disqualification undertakings from the Directors of a utilities installation business.

The undertakings were received for five years from Neil Doherty (42) and Sinead Doherty (44), both of Deerpark Road, Magherafelt in respect of their conduct as directors of Ballyward Limited (“the Company”).

The Company traded as a utility installation business from Deerpark Road, Magherafelt and went into liquidation on 29 May 2014 with estimated total assets available for creditors of £nil, liabilities to unsecured creditors of £200,668 and an estimated deficiency as regards creditors of £200,668. After taking into account the losses incurred by members (the shareholders) of the Company the estimated total deficiency was £200,768.

The Department accepted the disqualification undertaking from Neil Doherty on 30 January 2017 based on the following unfit conduct which solely for the purposes of the disqualification procedure was not disputed:

Causing and permitting the Company to operate a policy of discrimination against the Crown by retaining £125,639 which was properly payable to the Crown consisting of £26,921 in respect of PAYE for the tax years 2010/11 to 2012/13; £25,557 in respect of NIC for the tax years 2010/11 to 2012/13 and £73,161 in respect of VAT for the tax years 2010/11 to 2012/13;
Breaching his fiduciary duty to the Company by allowing the Company to incur £60,806 personal expenditure on behalf of himself and another director at a time when he knew or ought to have known the Company was not paying its debts as they fell due;
Causing and permitting the Company to fail to file accounts for the years ended 29 February 2012 and 28 February 2013, and causing and permitting the Company to fail to file accounts for the year ended 28 February 2011 on time;
Causing and permitting the Company to fail to comply with its statutory obligations in that the annual return for the year ended 25 February 2012 was filed late and the annual returns for the years ended 25 February 2013 and 25 February 2014 were not filed.
The Department accepted the disqualification undertaking from Sinead Doherty on 30 January 2017 based on the following unfit conduct which solely for the purposes of the disqualification procedure was not disputed:

Causing and permitting the Company to operate a policy of discrimination against the Crown by retaining £125,639 which was properly payable to the Crown consisting of £26,921 in respect of PAYE for the tax years 2010/11 to 2012/13; £25,557 in respect of NIC for the tax years 2010/11 to 2012/13 and £73,161 in respect of VAT for the tax years 2010/11 to 2012/13;
Breaching her fiduciary duty to the Company by allowing the Company to incur £33,043 personal expenditure on behalf of herself and another director at a time when she knew or ought to have known the Company was not paying its debts as they fell due;
Causing and permitting the Company to fail to file accounts for the year ended 28 February 2011 on time;
Causing and permitting the Company to fail to comply with its statutory obligations in that the annual return for the year ended
25 February 2012 was filed late.
The Department has accepted 42 Disqualification Undertakings and the Court has made three orders disqualifying directors in the financial year commencing 1 April 2016.

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