County Down Directors Agree To Disqualification

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The Department for the Economy has accepted disqualification undertakings for seven years from the directors of a swimming pool and spa installation business.

The undertakings came from Christopher James Melville Hodges (55) of Ballyblack Road, Newtownards and John Edward Ashley McKinley (53) of Alder Grange, Saintfield, Ballynahinch, in respect of their conduct as directors of Nichem Limited

dn_screenNichem Ltd carried on the business of installation of swimming pools, spas, saunas and steam rooms from Maryland Industrial Estate, 286 Ballygowan Road and went into liquidation on 10 September 2013 with estimated total assets available for preferential creditors of £13,700, liabilities to preferential creditors of £1,188, liabilities to unsecured creditors of £1,076,355 and an estimated deficiency as regards creditors of £1,063,843. After taking into account the losses incurred by members (the shareholders) of the Company, the estimated total deficiency was £1,065,843.

The Department accepted the disqualification undertaking from Christopher James Melville Hodges on 13 September 2016 based on the following unfit conduct which solely for the purposes of the disqualification procedure was not disputed:

*  Causing and permitting the Company to retain £721,008 properly due to the Crown consisting of £450,670 in respect of PAYE for the tax years 2009/10 to 2013/14 and £270,338 in respect of NIC for the tax years 2009/10 to 2013/14;
*  Withdrawing excessive remuneration totalling at least £197,731 at a time when the Company was insolvent and which was to the detriment of creditors;
*  Causing and permitting the Company to fail to comply with its statutory obligations in that Annual Returns for the periods made up to 30 November 2003 and 30 November 2005 to 30 November 2012 were not filed within the prescribed time period, and the Annual Return for the period made up to 30 November 2004 was not filed at all.

The Department accepted the disqualification undertaking from John Edward Ashley McKinley on 13 September 2016 based on the following unfit conduct which solely for the purposes of the disqualification procedure was not disputed:

*  Causing and permitting the Company to retain £721,008 properly due to the Crown consisting of £450,670 in respect of PAYE for the tax years 2009/10 to 2013/14 and £270,338 in respect of NIC for the tax years 2009/10 to 2013/14;
*  Withdrawing excessive remuneration totalling at least £198,282 at a time when the Company was insolvent and which was to the detriment of creditors;
*  Causing and permitting the Company to fail to comply with its statutory obligations in that Annual Returns for the periods made up to 30 November 2003 and 30 November 2005 to 30 November 2012 were not filed within the prescribed time period and the Annual Return for the period made up to 30 November 2004 was not filed at all.

The Department has accepted 21 Disqualification Undertakings and the Court has made three orders disqualifying directors in the financial year commencing 1 April 2016.