County Antrim directors accept disqualification undertakings for five and two years
Date published:
The Department for the Economy (the Department) has accepted disqualification undertakings from the directors of two companies involved in the business of bars, restaurants and retail units.
The undertakings were received for five years from John Patrick Hughes (67) of Hannahstown Hill Belfast, and for two years from Perpetua Teresa Hughes (51) of Barleywood Mill, Lisburn, in respect of their conduct as directors of Castle Street Inns Limited and Omara Limited (“The companies”).
Castle Street Inns Limited was involved in the operation of a number of public houses, restaurants and bars with a registered office at 17-25 College Square East, Stokes House, Belfast BT1 6DH. The Company went into administration on 31 January 2011 with an estimated deficiency as regards creditors of £3,540,011. There was a total of £1 owing as Share Capital, resulting in an estimated deficiency as regards members of £3,540,012.
Omara Limited was involved in the operation of a number of public houses and retail units with a registered office at 17-25 College Square East, Stokes House, Belfast BT1 6DH. The Company went into administration on 1 February 2011 with an estimated deficiency as regards creditors of £6,332,149. There was a total of £1 owing as Share Capital, resulting in an estimated deficiency as regards members of £6,332,150.
The Department accepted the disqualification undertakings from John Patrick Hughes and Perpetua Teresa Hughes on 20 March 2025 based on the following unfit conduct which solely for the purposes of the disqualification procedure was not disputed:
Castle Street Inns Limited
(a) Causing and permitting Castle Street Inns Limited to retain £999,395.63 properly payable to the Crown;
(b) Failing to file annual accounts for Castle Street Inns Limited for the periods ended 30 September 2003 to 30 September 2006, inclusive, within the prescribed time period with Companies House, and failing to file Annual Accounts for Castle Street Inns Limited for the periods ended 31 December 2007 to 31 December 2009, inclusive, at all with Companies House; and
(c) Causing and permitting Castle Street Inns Limited to fail to file Annual Returns for the years ended 11 April 2004 to 11 April 2010, inclusive, within the prescribed periods with Companies House.
Omara Limited
(a) Causing and permitting Omara Limited to retain £1,596,318.41 properly payable to the Crown;
(b) Failing to file Annual Accounts for Omara Limited for the periods ended 30 April 2003 to 31 December 2007, inclusive, within the prescribed time period with Companies House, and failing to file Annual Accounts for Omara Limited for the periods ended 31 December 2008 and 31 December 2009 at all with Companies House; and
(c) Causing and permitting Omara Limited to fail to file Annual Returns for the years ended 29 April 2003 to 29 April 2009, inclusive, within the prescribed periods with Companies House.
In addition the following unfit conduct was accepted by John Patrick Hughes which solely for the purposes of the disqualification procedure was not disputed:
Castle Street Inns Limited
(a) Failing to maintain and or preserve and or deliver up adequate accounting records relating to Castle Street Inns Limited.
Omara Limited
(a) Failing to maintain and or preserve and or deliver up adequate accounting records relating to Omara Limited.
The Department has accepted thirty disqualification undertakings and the Court has made eight 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 Official Receiver acting as liquidator, when a company is wound up by the Court, has a duty to investigate the causes of failure and report any 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
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