LATEST: Bathroom company directors disqualified

Two businessmen have been disqualified as directors.

Two businessmen have been disqualified as directors.

Two businessmen have been disqualified in Belfast High Court for their conduct as directors of a bathroom furniture sales company.

John McBride (41) of Ligford Road, Omagh and Christopher Convery (52) of Wheatsheaf Park, Coleraine were disqualified for seven years each on April 13 in respect of their conduct as directors of Touchwood Manufacturing Co Limited.

The company sold bathroom furniture from 2 Main Street, Plumbridge, Omagh. It went into liquidation on 7 June 2013 with estimated total assets available to creditors of £242,389, liabilities to preferential creditors of £2,280, liabilities to secured creditors of £335,812, liabilities to unsecured creditors of £275,768 and an estimated deficiency as regards creditors of £371,471.

After taking into account the losses incurred by the shareholders of the company the estimated total deficiency was £371,551.

The matters of unfit conduct alleged by the Department of Enterprise, Trade and Investment (the Department) in relation to both Mr McBride and Mr Convery in respect of their conduct and accepted by the court were:

Failure to fully co-operate with the liquidator in that they failed to:

* deliver up adequate accounting books & records;

* reconcile stock figures as stated in the statement of affairs with those stated in the draft accounts and as presented to the bank;

* reconcile the fixed assets register with the assets delivered up to the liquidator;

* confirm the nature of certain payments and transactions.

By doing so they hampered the liquidator’s investigation into the insolvent company;

They caused and permitted the company to fail to comply with its obligations under both Article 371 of the Companies (NI) Order 1986 and Section 854 of the Companies Act 2006 in that Annual Returns for the periods made up to 10 December 2002, 10 December 2004,10 December 2005, 10 December 2006, 10 December 2007,10 December 2009, 10 December 2010, 10 December 2011 and 10 December 2012 were filed late with Companies House.

The Department accepted nine disqualification undertakings and the Court has made two orders disqualifying directors in the financial year beginning April 1 this year.