The Department for the Economy (the Department) has accepted a disqualification undertaking from the director of a company involved in repair and maintenance of aircraft and spacecraft.
The undertaking was received for eight years from Christopher Anthony Brown (49) of Longsheelagh Avenue, Kircubbin, in respect of his conduct as a director of Chris Brown Aviation Ltd (“the Company”).
The Company was involved in repair and maintenance of aircraft and spacecraft with a registered office at 5 Longsheelagh Avenue, Kircubbin, BT22 2WP. The Company went into Liquidation on 19 July 2021 with an estimated deficiency as regards creditors of £20,040. There was a total of £1 owing as Share Capital, resulting in an estimated deficiency as regards members of £20,041.
The Department accepted the disqualification undertaking from Christopher Anthony Brown on 8 December 2023 based on the following unfit conduct which solely for the purposes of the disqualification procedure was not disputed:
- Applying for and obtaining a Bounce Back Loan of £20,000 to which Chris Brown Aviation Ltd was not fully entitled. Based on the turnover received in the 2019 calendar year, he, on behalf of the Company, was only entitled under the terms of the Bounce Back Loan to apply for and obtain a Bounce Back Loan of circa £7,746, therefore the Company obtained the benefit of an additional £12,254 to which it was not entitled; and
- Causing and / or permitting the misapplication of company funds and / or acting in a manner to benefit himself rather than the Company by making a payment of £18,000 to himself, £11,756 for repayment of his director’s current account in favour of other creditors and an additional £8,244 paid to himself personally. This was done in order to extract money tax free from the Company for the benefit of himself. The Bounce Back Loan ultimately did not provide any economic benefit to Chris Brown Aviation Ltd and therefore contravened the conditions attached to the Bounce Back Loan.
The Department has accepted twelve Disqualification Undertakings and the Court has made eight Disqualification Orders 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.
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