County Antrim director accepts disqualification undertaking for six years.
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The Department for the Economy (the Department) has accepted a disqualification undertaking from the director of a company involved in unlicensed restaurants and cafes.
The undertaking was received for six years from James Deery (45) of Nutts Corner Road, Crumlin, in respect of his conduct as director of Stacks Group Limited.
The Company was involved in unlicensed restaurants and cafes with a registered office at 28a Mallusk Road, Newtownabbey, BT36 4PP. The Company went into liquidation on 17 February 2022 with an estimated deficiency as regards creditors of £131,708.33. There was a total of £5 owing as Share Capital, resulting in an estimated deficiency as regards members of £131,713.33.
The Department accepted the Disqualification undertaking from James Deery on 11 February 2025 based on the following unfit conduct which solely for the purposes of the disqualification procedure were not disputed:
- He did not fully co-operate with the Official Receiver in that he did not attend the Examiner for online interview, provide a Preliminary Examination Questionnaire, a sworn Statement of Affairs, or make arrangements for the collection of company books & records. He therefore did not provide an explanation for the Company deficiency or a satisfactory explanation for the movement of Company assets.
As a consequence of his non co-operation, the Official Receiver was unable to:
- ensure that all company assets were properly accounted for;
- ensure that the full value of company assets was realised on behalf of creditors;
- satisfy himself that the Liquidation of the company was due to genuine trading difficulties;
- Satisfy himself that the deficiency at the date of liquidation can be fully explained and arose due to trading difficulties;
- He failed to learn from previous insolvencies and/ or demonstrated a repeated pattern of unfit conduct. He caused and permitted successive companies to fail to pay debts due totalling £62,932.93 to Land & Property Services in respect of commercial rates;
- He failed to exercise proper financial control over the company by not ensuring that a bank account was set-up in the company’s name and by transacting business trading through an unincorporated bank account in the name of a former company director;
- He caused and permitted the Company to fail to comply with the relevant legislation in that the confirmation statement for the period 4 December 2021 was never filed and confirmation statements for the periods ended 4 December 2018, 4 December 2019 and 4 December 2020 were not filed; and
- He failed to comply with the relevant legislation in that the annual accounts for the period ending 31 December 2019 were not filed, and annual accounts for period ending 31 December 2018 were filed late.
The Department has accepted twenty-six Disqualification Undertakings and the Court has made six Disqualification Orders in the financial year commencing 1 April 2024.
Notes to editors:
- 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.
- 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.
- 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.
- 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.
- 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.
- 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 548587.
- The period of disqualification commences at the end of 21 days beginning with the day the Disqualification Undertaking was accepted by the Department.
- For media enquiries contact the Department for the Economy Press Office at pressoffice@economy-ni.gov.uk
- The Executive Information Service operates an out of hours service for media enquiries only between 1800hrs and 0800hrs Monday to Friday and at weekends and public holidays. The duty press officer can be contacted on 028 9037 8110.
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