Construction firm directors disqualified

A County Derry director has been disqualified for 10 years in the High Court, Belfast, and another has accepted a disqualification undertaking for nine years in respect of their conduct as directors of two Dungiven-based construction material companies.

Donal Murphy (51) of Magheramore Road, Dungiven was disqualified on 17 September 2012 in respect of his conduct as a director of Murphy’s Construction Materials Limited and Murphy Concrete & Aggregates Ltd.

Anna Murphy (50) of De Glin Park, Claudy accepted a disqualification undertaking from the Department of Enterprise, Trade and Investment (the Department) on 23 January 2013 in respect of her conduct as a director of Murphy’s Construction Materials Limited and Murphy Concrete & Aggregates Ltd.

Murphy’s Construction Materials Limited carried on the business of the supply of sandstone, sand and readymix from Magheramore Road, Dungiven, and went into liquidation on 28 January 2010 with no assets, liabilities to unsecured creditors of £1,459,524, and an estimated deficiency as regards creditors
of £1,459,524.

After taking into account the losses incurred by members (the shareholders) of the company the total estimated deficiency was £1,459,526.

The matter of unfit conduct alleged by the Department of Enterprise, Trade and Investment (the Department) in respect of their conduct as directors of Murphy’s Construction Materials Limited, which solely for the purposes of the disqualification procedure in the case of Anna Murphy was not disputed and which in the case of Donal Murphy was accepted by the Court, was
as follows:

· causing and permitting Murphy’s Construction Materials Limited to retain a total of £865,587 properly due to the Crown in respect of the aggregates levy for the periods 02/07/02 to 30/06/09.

The following additional matters of unfit conduct alleged by the Department and accepted by the Court in relation to Donal Murphy in respect of his conduct as a director of Murphy’s Construction Materials Limited were:

· failing to submit a Sworn Statement of Affairs for Murphy’s Construction Materials
Limited;

· causing and permitting payments and benefits in kind totalling £94,451 to be made by Murphy’s Construction Materials Limited to the detriment of its creditors;

· failing to make a full disclosure of the assets of Murphy’s Construction Materials Limited and failing to account for the sale proceeds.

Murphy Concrete & Aggregates Ltd carried on the business of the provision of readymix concrete, sand and gravel from Magheramore Road, Dungiven, and went into liquidation on 16 June 2011 with no assets, liabilities to unsecured creditors of £113,787, and an estimated deficiency as regards creditors of £113,787.

After taking into account the losses incurred by members (the shareholders) of the company the total estimated deficiency was £113,789.

The matters of unfit conduct alleged by the Department of Enterprise, Trade and Investment (the Department) in relation to Donal Murphy in respect of his conduct as a director of Murphy Concrete and Aggregates Ltd and accepted by the
Court were:

· causing and permitting payments totalling £47,568 to be made by Murphy Concrete and Aggregates Ltd to and on behalf of Murphy’s Construction Materials Limited contrary to Articles 203 and 204 of Insolvency (NI) Order 1989, for the benefit of the directors and to the detriment of the creditors of Murphy Concrete and Aggregates Ltd;

· causing and permitting Murphy Concrete & Aggregates Ltd to retain a total of £41,043 properly due to the Crown consisting of £26,768 in respect of the aggregates levy for the period 01/06/2009 to 16/06/2011; and £14,275 in respect of VAT for the quarterly periods ending 09/09 to 06/11.

The Department has accepted 62 Disqualification Undertakings and the Court has made 24 orders disqualifying directors in the financial year commencing 1 April 2012.