County Armagh and County Monaghan directors disqualified

The High Court has made disqualification orders against the directors of a convenience store which traded as a Quinns Superstore in Crossmaglen.

Director Disqualification Undertaking

The Orders were made for seven years against Michael Quinn (60) of Cardinal O’Fiaich Square, Crosmaglen, Co Armagh, BT35 9AA and for six years from Brigid Quinn (58) of Castleblayney Road, Carrickmacross, Co Monaghan, in respect of their conduct as directors of Cloughvalley Stores (NI) Limited (“the Company”).

The Company operated from premises at Newry Road, Crossmaglen and went into Administration on 17 October 2011, followed by a compulsory Liquidation on 19 March 2015, with estimated total assets available to creditors of £103,000, estimated liabilities to unsecured non-preferential creditors of £446,000 and an estimated deficiency as regards creditors of £4,815,000.  After taking into account the losses incurred by members (the shareholders) of the Company the estimated total deficiency was £4,915,100.

The Court made the Disqualification Order against the Michael and Brigid Quinn on 14 June 2023 based on the following unfit conduct which solely for the purposes of the disqualification procedure was not disputed:

(a)    They caused and permitted Cloughvalley Stores (N.I.) Limited to fail to pay £160,915.10 properly due to the Crown;

(b)    They have failed to co-operate fully with the Administrator, Tom Keenan, as Office Holder, in contravention of Article 199(2) of the Insolvency (Northern Ireland) Order 1989;

(c)     They caused and permitted Cloughvalley Stores (N.I.) Limited to misuse its Danske Bank account in that they tendered cheques without due regard for them being honoured upon presentation;

(d)   They failed to file Annual Accounts for Cloughvalley Stores (N.I.) Limited for the years ended 31 December 2003 and 31 December 2005 to 31 December 2008 (inclusive) within the prescribed periods with Companies House and failed to file Annual Accounts for the year ended 31 December 2010 at all, and

(e)   They caused and permitted Cloughvalley Stores (N.I.) Limited to fail to file Annual Returns for the periods ended 16 June 2003 to 16 June 2004 (inclusive) and 16 June 2006 to 16 June 2011 (inclusive) within the prescribed periods with Companies House.

In addition the following unfit conduct was also considered to be an additional matter by reference to which Michael Quinn was unfit to be concerned in the management of a company:

(f) On 12 March 2012, he entered into the Cloughvalley Stores (N.I.) Limited’s premises and caused criminal damage to company property.

The High Court has made three Disqualification Orders and the Department has accepted  two Disqualification Undertakings in the financial year commencing 1 April 2023.

Notes to editors: 

1. 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 548582.

7. The period of disqualification commences at the end of 21 days beginning with the day the Disqualification Undertaking was accepted by the Department.

8. For media enquiries contact the Department for the Economy Press Office at pressoffice@economy-ni.gov.uk

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