A Dromore director has agreed to be disqualified after his business, Banjax Limited, went into liquidation.
The Department of Enterprise, Trade and Investment accepted a disqualification undertaking from Darryl William Collins, the director of a software development and consultancy company.
The undertaking was received for six years from the 56-year-old of Grove Road, Dromore in respect of his conduct as a director of Banjax Limited.
The Company carried on the business of software development and consultancy from 49 Botanic Avenue, Belfast and went into liquidation on 26 September 2013.
It had estimated total assets available to preferential creditors of £10,500, liabilities to preferential creditors of £10,500, liabilities to unsecured creditors of £261,458, and an estimated deficiency as regards creditors of £261,458.
After taking into account the losses incurred by members (the shareholders) of the Company the estimated total deficiency was £261,558.
The Department accepted the disqualification undertaking from 5 January 2016 based on the following unfit conduct which solely for the purposes of the disqualification procedure was not disputed by Darryl Collins:
· Causing and permitting the Company to misapply funds, or in the alternative, put those funds at risk to the detriment of creditors, by making substantial unsecured loans culminating in a total loan of £138,035 due from a connected company at a time when he knew or ought to have known that the connected company was itself insolvent.
In so doing, he failed to pay sums due to the company’s creditors;
· Causing and permitting the company to fail to make a provision for a substantial doubtful debt in its financial statements.
The accounts therefore reflected an inaccurate state of solvency;
· Causing and permitting the company to retain £120,760 properly due to the Crown consisting of £17,323 in respect of PAYE for the tax years 2012/13 and 2013/14; £29,694 in respect of NIC for the tax years 2011/12 to 2013/14 and £73,743 in respect of VAT for the tax years 2008/09 to 2013/14.
The Department has accepted 19 Disqualification Undertakings and the court has made eight orders disqualifying directors in the financial year commencing 1 April 2015.