Two Co Derry directors have been disqualified for eight years each in respect of their conduct as directors of a property development company.
Patrick Murphy (58) and Anne Murphy (55), both of Ballyquin Road, Limavady were disqualified in the High Court, Belfast in respect of their conduct as directors of P&A Property Developments Limited.
The company carried on the business of property development and investment from Ballyquin Road, Limavady and went into liquidation on 7 October 2011 with total assets available to creditors of £156, liabilities to unsecured creditors of £165,983, and an estimated deficiency as regards creditors of £165,827.
After taking into account the losses incurred by members (the shareholders) of the Company the total estimated deficiency was £165,851.
The matters of unfit conduct alleged by the Department of Enterprise, Trade and Investment (the Department) in relation to Patrick Murphy in respect of his conduct as a director of the Company and accepted by the Court were:
breaching the terms of the Company’s Company Voluntary Arrangement (CVA) by failing to declare funds received from the sale of the company’s apartments and to bring those funds into the CVA.
causing and/or permitting the misappropriation of company funds, contrary to the interests of the Company, by failing to bring the £60,000 sale proceeds into the CVA or the Liquidated company estate;
breaching her fiduciary duty by causing and permitting P&A Property Developments Limited to incur intercompany debt of £249,958.
taking excessive dividends of £472,800 over the two year period prior to entering a CVA;
causing and permitting P&A Property Developments Limited to fail to pay a sum of £147,152 over the period 2007/08 to 2009/10 in respect of Corporation Tax which was properly payable to the Crown;
breaching Section 197 of the Companies Act 2006 by obtaining a loan from P&A Property Developments Limited which was not approved by the members of the company.
The matters of unfit conduct alleged by the Department of Enterprise, Trade and Investment (the Department) in relation to Anne Murphy in respect of her conduct as a director of the Company and accepted by the Court were:
breaching the terms of the Company’s Company Voluntary Arrangement (CVA) by failing to declare funds received from the sale of the company’s apartments and to bring those funds into the CVA.
causing and/or permitting the misappropriation of company funds, contrary to the interests of the Company, by failing to bring the £60,000 sale proceeds into the CVA or the Liquidated company estate;
breaching her fiduciary duty by causing and permitting P&A Property Developments Limited to incur intercompany debt of £249,958.
taking excessive dividends of £472,800 over the two year period prior to entering a CVA;
causing and permitting P&A Property Developments Limited to fail to pay a sum of £147,152 over the period 2007/08 to 2009/10 in respect of Corporation Tax which was properly payable to the Crown;
breaching Article 197 of the Companies Act 2006 by allowing the Company to provide a loan to Patrick Murphy which was not approved by the members of the company.
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