County Down director accepts disqualification undertaking for six years

Date published: 14 April 2025

The undertaking was received for six years from Eamon McNamee (58) of Carrowmannan Road, Belleeks, Newry, in respect of his conduct as director of EJM Building & Carpentry Ltd (“the Company”).

The Company was involved in other specialised construction activities not elsewhere classified with a registered office Carrowmannan Road, Belleeks, Newry, Co. Down. The Company went into liquidation on 26 May 2022 with an estimated deficiency as regards creditors of £103,411.35. There was a total of £100 owing as Share Capital, resulting in an estimated deficiency as regards members of £103,511.35.

The Department accepted the Disqualification undertaking from Eamon McNamee on 21 March 2025 based on the following unfit conduct which solely for the purposes of the disqualification procedure were not disputed:

(a) Failing to fully co-operate with the Official Receiver. The Official Receiver has been unable to carry out investigations into the affairs of the Company. As a result, the Official Receiver has been unable to:

(i)Obtain a signed copy of the Narrative Statement and HMRC Duty Form;

(ii) Ascertain the actual turnover for the period 01 October 2019 to cessation of trading to confirm whether all the monies were received and applied for the benefit of the company. In particular as transactions appear to have been put through the director’s personal bank account as well as the company bank account;

(iii)Ascertain the full matters in respect of the Company expenditure, as transactions appear to have been put through his personal bank account as well as the company bank account, in particular;

• Stating that the £2,000 transfer on 28 January 2020 and £11,000 transfer on 14 February 2020 from the Company’s bank account were made to Flagstaff Building Supplies, however Santander bank have informed the Official Receiver that these transfers were actually to his personal account.
• Ascertain if £4,000 paid to the credit union was included in his remuneration declared to HMRC or accounted for in his director’s current account.
• Ascertain if £3,200 paid in respect of Rates for his personal property, was included in his remuneration declared to HMRC, or accounted for in his director’s current account.
• Ascertain if the £46,595 director’s current account owed to him as at 30 September 2019 was repaid, and if so, whether this was a preference payment.

(iv) Ascertain the actual amounts due to HMRC;

(v) Form a complete picture of the financial position of the Company at any time from 01 October 2019 to the date of Liquidation;

(vi) Be satisfied that the insolvency arose from genuine trading difficulties;

(vii) Investigate fully the circumstances leading to the failure; and

(viii) Determine the full assets and liabilities.

(b) Declaring total dividends of £47,360 for the years ended 30 September 2018 and 30 September 2019 when only a dividend of £7,518 was permissible. This has resulted in £39,842 of unlawful dividends being declared. The Company balance sheet has disclosed an insolvent position for 2018 and 2019 when the dividends were taken. It is therefore evident that the dividend payments were unlawful and to the detriment of both the company and its creditors; and

(c) Causing and / or permitting EJM Building Carpentry Ltd to misuse its bank accounts by tendering cheques and payments without due regard to the ability of the Company to honour these upon presentation and, consequently, obtaining goods and services without the funds to pay for them, thereby causing a detriment to trade creditors.

The Department has accepted thirty-two disqualification undertakings, and the Court has made eight disqualification orders in the financial year commencing 1 April 2024.