County Antrim directors disqualified for twelve years
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The High Court has made a Disqualification Order against the directors of a company which traded as a flooring contractor.
The Order was made for twelve years against Jim Darrah (75) and Isobel Darrah (73) of Cairn Road, Carrickfergus in respect of their conduct as directors of J Flooring Global Limited (“the Company”).
J Flooring Global Ltd traded in the fitting of carpet and other flooring products with a registered office at 2 Market Place, Carrickfergus, Co. Antrim, BT38 7AW. The Company went into liquidation on 10 May 2022 with an estimated deficiency as regards creditors of £50,610.18. There was a total of £10 owing as Share Capital, resulting in an estimated deficiency as regards members of £50,620.18.
The Court made the Disqualification Order against Jim Darrah and Isobel Darrah on 12 March 2026 based on the following unfit conduct which solely for the purposes of the disqualification procedure was not disputed:
- They knew when applying for the Bounce Back Loan, that J Flooring Global Ltd had not been impacted by Covid-19 as the Company had ceased trading from 1 November 2019. Furthermore, they knew and/ or ought to have known that the Bounce Back Loan would not provide an economic benefit to the Company as J Flooring Global Ltd had already ceased trading at the date in which the loan was applied for. The Company was neither entitled to claim nor receive financial assistance from a Bounce Back Loan; and
- As directors of J Flooring Global Ltd, they caused and / or permitted the misapplication of company funds and / or acted in a manner to benefit themselves by making personal withdrawals from the company bank account after cessation of trading totalling at least £52,207.84 to their own personal benefit rather than the Company; this was done in order to extract money from J Flooring Global Ltd and resulted in a significant balance of £49,891.44 outstanding to Bank of Ireland in respect of a Bounce Back Loan.
The Department accepted nineteen Disqualification Undertakings and the Court made seven Disqualification Orders in the financial year commencing 1 April 2025.
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.
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