The Department of Enterprise, Trade and Investment (DETI) has accepted both Gerard McManus, 44, of Molly Road, Derrygurdy, Derrylin, Co Fermanagh and Carina McManus, 39, of the same in respect of their conduct as directors of Gerry McManus Plant Hire Ltd.
The firm carried on the business of plant hire, civil engineering contracts and aggregate crushing from Molly Road, Derrygurdy, Derrylin, and went into liquidation on 15 December 2008 with estimated assets of £1,322,000, liabilities of £48,482 to preferential creditors, liabilities of £542,034 to floating charge holders, liabilities of £5,075,559 to non-preferential creditors, and an estimated deficiency as regards creditors of £4,344,075.
After taking into account the losses incurred by members (the shareholders, including the directors) of the company the total estimated deficiency was £4,364,075.
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DETI accepted the disqualification undertakings from the directors on 10 June based on the following unfit conduct, which solely for the purposes of the disqualification procedure was not disputed:
Specifically, they were accused of causing and permitting the withholding of a sum of £507,103 which was properly payable to the Crown consisting of £202,671 to PAYE, £276,449 to NIC for the years 2007/08 and 2008/09 and £27,983 to VAT for the year 2008/09;
They were also held liable for causing and permitting the misuse of a bank account at Ulster Bank Ltd by tendering 154 cheques with a value of £511,434, together with 90 direct debits and seven standing orders without due regard to their being honoured on presentation and causing and permitting the misuse a bank account at AIB Bank by tendering 34 cheques with a value of €344,490, 141 direct debits with a value of €533,859 and 20 standing orders with a value of €2,260 without due regarding to their being honoured, in addition AIB Bank charged fees of €8,307 for paying a further 1,846 items that took the account beyond agreed credit limits.
The couple also were held to have been guilty of causing and permitting the sale of goods on hire purchase without the consent of the owner, resulting in a loss to the owner of £22,706.
A DETI statement said their aim is to bring disqualification proceedings against those directors of failed companies who have abused the privilege of limited liability status through negligence, incompetence or lack of commercial probity.
The legislation is for the protection of the public and trading community but its operation should not inhibit genuine enterprise, they said.
(BMcC/GK)
