Co. Antrim Directors agree to Disqualification

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

Director Disqualification Undertaking

The undertakings were received for six years from Barry James Toal (31) of Duneane Road, Toomebridge, Co Antrim, and six years from James Daniel Toal (57) of Duneane Road, Toomebridge, Co Antrim, in respect of their conduct as directors of J and P Toal Limited (“the Company”).

The Company traded in the supply of specialist manufacturing jobs for various concrete companies from Duneane Road, Toomebridge, Co Antrim, and went into Liquidation on 10 November 2016 with an estimated deficiency as regards creditors of £475,521.92. 

The Department accepted the disqualification undertaking from Barry James Toal on 9 January 2020 based on the following unfit conduct which solely for the purposes of the disqualification procedure was not disputed:

• Causing and permitting J and P Toal Limited to operate a policy of discrimination against the Crown, in that from 2012/13 to the date of liquidation the Company retained monies totalling £446,674.14 in respect of PAYE / NIC and VAT which was properly payable to the Crown;
• Failing in their stewardship of the Company’s financial affairs, by failing to ensure that J and P Toal Limited had a PAYE system in place for its employees; and
• Failing to maintain and / or preserve and / or deliver up adequate accounting records which were sufficient to show and explain the Company’s transactions and were such as to disclose with reasonable accuracy, at any time, the financial position of the Company contrary to Article 386 of the Companies Act 2006.

The Department accepted the disqualification undertaking from James Daniel Toal on 9 January 2020, based on the following unfit conduct which solely for the purposes of the disqualification procedure was not disputed:

• Causing and permitting J and P Toal Limited to operate a policy of discrimination against the Crown, in that from 2012/13 to the date of liquidation the Company retained monies totalling £446,674.14 in respect of PAYE / NIC and VAT which was properly payable to the Crown;
• Failing in their stewardship of the Company’s financial affairs, by failing to ensure that J and P Toal Limited had a PAYE system in place for its employees; and
• Failing to maintain and / or preserve and / or deliver up adequate accounting records which were sufficient to show and explain the Company’s transactions and were such as to disclose with reasonable accuracy, at any time, the financial position of the Company contrary to Article 386 of the Companies Act 2006.

The Department has accepted nine Disqualification Undertakings in the financial year commencing 1 April 2019.

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 15 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 10 years reserved for particularly serious cases, six to 10 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. For media enquiries contact DfE Press Office on 028 9052 9604. Out of office hours please contact the Duty Press Officer on 028 9037 8110.
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