Business

Boardroom bans handed down to another batch of rogue directors

ANOTHER batch of rogue directors - who were running businesses in construction, telecoms and motor repair - have been handed boardroom bans of between three and six years in the latest cases brought by the Department for the Economy.

They included a husband and wife in their late 60s from Cookstown, to four members of the same family in Co Down, to a Scot who ran a company in Derry.

John Joseph MacMahon (67) and his wife Anne MacMahon (68), both of Coolreaghs Road in Cookstown, were banned for six and three years respectively.

They were directors of J.J. MacMahon building contractors in the Tyrone town,which went into administrative receivership in October 2012 owing £3,751,982.

The couple admitted causing the company to enter into transactions below market value and for no consideration in the months prior to its collapse at a time when it was unable to pay its debts to HMRC. The company ended up withholding more than £218,000 in various taxes.

Meanwhile four directors of Bangor motor vehicle repairs and maintenance firm TKM (NI) Limited were handed disqualifications totalling 20 years after it went into liquidation three years ago owing £317,399.

The department accepted undertakings for six years from Trevor Bibby (59) and four years from Phyllis Bibby (60), both of Old Movilla Road in Newtownards, and for six years from Kenneth Bibby (62) and four years from Helen Bibby (50), both of Seacourt Lane, Bangor in respect of their conduct as directors of the firm.

Among various areas of unfit conduct, one or more of the various the directors were said to have let the company to make a personal payment of £53,400 to the detriment of creditors, retaining £212,763 in various taxes to prop up the company, and failing to make annual returns.

In a separate case, Kenneth Ian McInnes (56) of Tarbert in Argyll, who was director of call centre firm Censys in Derry, was handed a six year ban (previously another director was disqualified for seven years).

The firm went into liquidation in July 2011 owing more than half a million pounds, and the court heard that the business held on to £591,072 due in taxes.

McInnes was also said to have drawn remuneration in excess of what Censys could afford to pay causing the insolvent position of the company to the detriment of the creditors.

In the last financial year the department has accepted 48 disqualification undertakings and the court has made three orders disqualifying directors.