County Down director accepts disqualification undertaking for ten years
Date published:
The Department for the Economy (the Department) has accepted a disqualification undertaking from the director of a company with a registered activity of retail sale of beverages in specialised stores.
The undertaking was received for ten years from Ian Terry Mayhew (45) of Laragh Park, Bangor, in respect of his conduct as director of Kauffee Ltd (“the Company”).
The registered activity of the Company was retail sale of beverages in specialised stores with a registered office at Unit 540, Moat House, 54 Bloomfield Avenue, Belfast, BT5 5AD. The Company went into liquidation on 31 March 2023 with an estimated deficiency as regards creditors of £51,584. There was a total of £100 owing as Share Capital, resulting in an estimated deficiency as regards members of £51,684.
The Department accepted the disqualification undertaking from Ian Terry Mayhew on 08 July 2025 based on the following unfit conduct which solely for the purposes of the disqualification procedure were not disputed:
(a) The director knew when applying for the Bounce Back Loan, that Kauffee Ltd had not been impacted by Covid-19 as the Company had not commenced trading on 01 March 2020. Furthermore, he knew and / or ought to have known that the Bounce Back Loan would not provide an economic benefit to the Company as Kauffee Ltd had not commenced trading at the date in which he applied for the loan. Kauffee Ltd was neither entitled to claim nor receive, financial assistance from a Bounce Back Loan; and
(b) Causing and / or permitting the misapplication of company funds and / or acting in a manner to benefit another company rather than Kauffee Ltd by using all of the Bounce Back Loan for the benefit of Bonka’s Desserts Ltd which is now dissolved.
The Department has accepted seven disqualification undertakings, and the Court has made two disqualification orders in the financial year commencing 1st 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.
- For media enquiries contact the Department for the Economy Press Office at pressoffice@economy-ni.gov.uk
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