County Tyrone director accepts disqualification undertaking for 7 years
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The Department for the Economy (the Department) has accepted a disqualification undertaking from the director of a company which traded in the business of selling machinery.
The undertaking was received for seven years from Martin Morris (50) of Hillview Avenue, Donaghmore, Dungannon, in respect of his conduct as director of Trade Balers Limited (“the Company”).
The registered activity of the Company was the recovery of sorted materials and selling machinery with a registered office at Hillview Avenue, Donaghmore, Dungannon. The Company went into liquidation on 24 August 2022 with an estimated deficiency as regards creditors of £493,938. There was a total of £100 owing as Share Capital, resulting in an estimated deficiency as regards members of £494,038.
The Department accepted the disqualification undertaking from Martin Morris on 29 January 2026 based on the following unfit conduct which solely for the purposes of the disqualification procedure was not disputed:
- Causing and permitting the Company to sell assets which were subject to a fixed charge and / or failing to account for the whereabouts of assets to finance companies. This was in breach of the Finance Agreements and without the authority of the charge holders;
- Failing to fully co-operate with the Official Receiver in that he did not provide any details regarding the delivery of the company books and records, the accounting software login details, or a deficiency explanation. He therefore did not provide an explanation for the Company deficiency or a satisfactory explanation for the movement of Company assets;
- Causing and permitting the Company to fail to comply with the relevant legislation in that the confirmation statements for the period 14 April 2022 and 14 April 2021 were never filed and confirmation statements / annual return for the periods ended 14 April 2020, 14 April 2018, 14 April 2017, and 14 April 2016 were filed late; and
- He failed to comply with the relevant legislation in that the annual accounts for the years ending 31 May 2021 and 31 May 2020 were not filed, and annual accounts for years ending 31 May 2018, 31 May 2017 and 31 May 2015 were filed late.
The Department has accepted fourteen disqualification undertakings, and the Court has made four 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.
- For media enquiries contact the Department for the Economy Press Office at pressoffice@economy-ni.gov.uk
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