THE boss of a commercial property company in Portrush has received a boardroom ban of nine years.
Colin Richard Fletcher (50) of Ballymacrea Road, Portrush, Co was disqualified by the Department of Enterprise, Trade and Investment in respect of his conduct as director of CRF Developments Ltd.
Proceedings are continuing against another director.
The company carried on the business of property development for residential and commercial sites in Northern Ireland from Causeway Street, Portrush and went into administration on March 26, 2010 with estimated assets available for floating charge holders of £5,159,118, liabilities due to the floating charge holders of £17,048,050, liabilities of £480,504 to unsecured creditors, and an estimated deficiency as regards creditors of £12,369,436.
After taking into account the losses incurred by shareholders the total estimated deficiency was £12,369,437.
The Department accepted the disqualification undertaking from Mr Fletcher on June 21 this year based on the following unfit conduct which solely for the purposes of the disqualification procedure was not disputed:
· misusing the directors loan account by allowing it to exceed the statutory limit of £5,000 as specified by Articles 338(2) and 342 of the Companies (NI) Order 1986 for the years ending 30 November 2005, 30 November 2006 and 30 November 2007. He also caused and permitted the company to contravene Article 197 of the Companies Act 2006 by having a loan for the year ending 30 November 2008 which was not sanctioned by the member;
· misusing at least £659,683.46 of company funds in the company to purchase properties in Portugal and Spain in his own name. His actions resulted in an estimated loss of £659,683.46 in these investments;
· causing and permitting the company to fail to file its Annual Returns on time for the period ending 6 November 2004 and not to file the Annual Return for the period ending 6 November 2005 at all.
The Department has accepted 27 disqualification undertakings and the court has made eight orders disqualifying directors in the financial year commencing 1 April 2012.