02.04.2007

Ex directors banned

Northern Irelands Department of Enterprise, Trade and Investment has accepted disqualification undertakings from the three directors of Elevation Equipment Company “in respect of their conduct as directors of the County Antrim company” which left debts of over £5 million when it was closed in 2004.

Managing director Robin Ardil, 55, has agreed to a 10 year ban, Ciaran Gillespie, 51, to six years and Albert McCarthy, 53, to three years.

Elevation went into liquidation on the 9th January 2004 with assets of £104,916; liabilities of £5,681,875; and a shortfall to creditors of £5,576,959.

By offering a disqualification undertaking that was acceptable to the Department, the three avoided a full hearing of the matter before the court, a shorter period of disqualification than would otherwise be appropriate is normally imposed.

The Department accepted the disqualification undertaking from Ardil for “causing and permitting the company to trade from 1 August 2002 to 9 January 2004, at a time when he knew, or ought to have known, that it was insolvent and when such trading was to the detriment of creditors”.

• Failing to explain or account for transactions involving payment to himself totalling at least £42,066.50;

• Failing to deliver up certain company assets subject to finance having either disposed of, and/or having failed to settle the outstanding finance thereby increasing the deficiency due to the finance companies;

• Causing and permitting the misappropriation of the company's assets to the detriment of creditors, in that income of £98,620 was generated from the company's assets from the 1 August 2003 to 30 November 2003 when he personally traded as the Access Store.

• Failing to file annual accounts for the company for the year ended 31 July 2002; and

• Failing to ensure that the Annual Return for the company, made up to 15 September 2002, was filed on time and that the Annual return for the company, made up to 15 September 2003 was filed.

The Department accepted the disqualification undertakings from Gillespie and McCarthy for trading while insolvent and failure to file accounts. Both Ardil and Gillespie were also accused of failing to co-operate with the department.

Disqualification from being a director falls into three bands and can be for up to 15 years. Bans of over 10 years are reserved for extremely serious cases.

The agreed disqualification has the same teeth as one handed out by a court and contravention or breach can be considered to be a criminal case and result in up to two years imprisonment.