County Down directors agree to disqualification

The Department for the Economy (the Department) has accepted disqualification undertakings from the directors of a company involved in unlicensed restaurants and cafes.

Director Disqualification Undertaking

The undertakings were received for five years from David Reynolds (43) of Shepherds Close, Newry, for five years from Caroline Reynolds (47) of Shepherds Close, Newry and for five years from Kris Fletcher (39) of Craigmore Road, Newry, in respect of their conduct as directors of Craigmore Catering Ltd (“the Company”).

The Company was involved in unlicensed restaurants and cafes with a registered office at River House, Home Avenue, Newry, Co Down BT34 2DL.  The Company went into liquidation on 27 September 2018, with estimated total assets available to creditors of £120,000, estimated liabilities to the floating charge-holder of £55,000, estimated liabilities to unsecured creditors of £738,068 and an overall estimated deficiency as regards creditors of £673,068.  There was a total of £99 owing as Share Capital, resulting in an estimated deficiency as regards members of £673,167.

The Department accepted the disqualification undertakings from David Reynolds, Caroline Reynolds and Kris Fletcher on 18 December 2023 based on the following unfit conduct which solely for the purposes of the disqualification procedure were not disputed:

1. They caused and permitted Craigmore Catering Ltd to operate a policy of discrimination against the Crown. From 2013/14 to the date of liquidation, they caused and permitted Craigmore Catering Ltd to retain monies totalling £360,280.70 representing 53.5% of the company's overall estimated deficiency in respect of PAYE, NIC and VAT which were properly payable to the Crown;

2. They failed to maintain, preserve and deliver up adequate books and records of Craigmore Catering Ltd; and

3. They caused and permitted Craigmore Catering Ltd to fail to comply with the Companies Act 2006 in that the Annual Returns and or the Confirmation Statements for the periods ended 29 December 2009 to the 29 December 2017 were not filed within the prescribed period.

The Department has accepted 15 Disqualification Undertakings and the Court has made eight Disqualification Orders in the financial year commencing 1 April 2023.

Notes to editors: 

1. Insolvency Practitioners acting as voluntary liquidators, administrative receivers and administrators have a duty to report unfit conduct to the Insolvency Service within the Department for the Economy.

2. 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.

3. 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.

4. 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.

5. 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.

6. 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 two 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 548582.

7. The period of disqualification commences at the end of 21 days beginning with the day the Disqualification Undertaking was accepted by the Department.

8. To keep up to date with news from the Department you can follow us on the following social media channels:

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9. For media enquiries contact the Department for the Economy Press Office at pressoffice@economy-ni.gov.uk

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