County Antrim director receives eight year disqualification order
Date published:
The High Court has made a Disqualification Order against the director of a company involved in repair and maintenance of aircraft & spacecraft.
The Order was made for eight years against Glen Christie Gibson (50) of Carolhill Park, Belfast, in respect of his conduct as director of Aerroid Ltd (“the Company”).
The Company was involved in repair and maintenance of aircraft & spacecraft with a registered office at Marmont Drive, Belfast. The Company went into liquidation on 12 October 2021 with an estimated deficiency as regards creditors of £39,637.17. There was a total of £0.01 owing as Share Capital, resulting in an estimated deficiency as regards members of £39,637.18.
The Court made the Disqualification Order against Glen Christie Gibson on 25 February 2025 based on the following unfit conduct which solely for the purposes of the disqualification procedure were not disputed:
- Causing and / or permitting the misapplication of company funds and / or acting in a manner to benefit himself rather than the Company by using the Company turnover and / or the Bounce Back Loan to pay himself a significant increase in salary. The Bounce Back Loan ultimately did not provide any economic benefit to Aerroid Ltd and therefore contravened the conditions attached to the Bounce Back Loan;
- Failing to fully co-operate with the liquidator of the Company. He has not provided a response to the questions put to him in relation to an overview on how the Bounce Back Loan funds were utilised, and the specific queries with reference to who the seven transactions labelled ‘Account 58071075’ were transferred;
- Causing and / or permitting Aerroid Ltd to fail to comply with the relevant legislation in that annual accounts for the year ending 31 August 2020 were never filed; and
- Causing and / or permitting Aerroid Ltd to fail to comply with the relevant legislation in that the Confirmation Statement for the period ended 19 August 2019 was not filed within the prescribed time and the Confirmation Statement for the period ended 19 August 2021 was never filed.
The Department has accepted twenty-seven disqualification undertakings and the Court has made seven 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.
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 548587.
7. 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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