The Department for the Economy (the Department) has accepted a disqualification undertaking from the director of a company involved in the maintenance and repair of motor vehicles.
The undertaking was received for five years from Kyle Harvey (34) of Prospect Link, Carrickfergus, Antrim in respect of his conduct as a director of RT Services Ltd (“the company”).
The company was involved in the maintenance and repair of motor vehicles with a registered office at 17 Enterprise House, Enterprise Crescent, Lisburn, BT28 2BP. The company went into Liquidation on 03 October 2019 with an estimated deficiency as regards creditors of £104,431.50. There was a total of £1 owing as Share Capital, resulting in an estimated deficiency as regards members of £104,432.50.
The Department accepted the disqualification undertaking from Kyle Harvey on 27 April 2023 based on the following unfit conduct which solely for the purposes of the disqualification procedure was not disputed:
- Failing to fully co-operate with the Official Receiver as Officer Holder and as a result, the Official Receiver was unable to carry out his investigations into the affairs of the company;
- Causing and permitting the company to operate a policy of discrimination against the Crown between 06 April 2017 through to the cessation of trade on 03 October 2019. Causing and permitting RT Services Ltd to retain monies totalling £102,005.35 due to the Crown as at the date of liquidation. This represented the full company deficiency, as HMRC was noted to be the only creditor at the date of liquidation. Furthermore, operating a policy of discrimination in that significant payments were made to trade creditors and directors at a time when the HMRC debt continued to increase;
- Causing and permitting RT Services Ltd to fail to comply with the relevant legislation in that annual accounts for the trading period were never filed; and
- Causing and permitting RT Services Ltd to fail to comply with the relevant legislation in that the confirmation statement for the period ending 08 February 2018 was not filed within the prescribed period. In addition, failing to file the confirmation statement for the period ended 08 February 2019.
The Department has accepted one Disqualification Undertaking in the financial year commencing 1 April 2023.
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 548582.
- The period of disqualification commences at the end of 21 days beginning with the day the Disqualification Undertaking was accepted by the Department.
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