The High Court has made a Disqualification Order against the director of a company involved in repair and maintenance of aircraft and spacecraft.
The Order was made for 12 years against William Henry Elliott (31) of Drumcree Place, Newtownabbey, County Antrim, in respect of his conduct as director of WHE Aerospace Ltd (“the Company”).
The Company was involved in repair and maintenance of aircraft and spacecraft with a registered office at 2 Market Place Carrickfergus, Co. Antrim, BT38 7AW. The Company went into liquidation on 19 July 2021 with an estimated deficiency as regards creditors of £13,822. There was a total of £1 owing as Share Capital, resulting in an estimated deficiency as regards members of £13,823.
The Court made the Disqualification Order against William Henry Elliott on 09 May 2024 based on the following unfit conduct which solely for the purposes of the disqualification procedure were not disputed:
- Applying for the Bounce Back Loan, when he knew that WHE Aerospace Ltd had not been impacted by Covid-19 as the Company had ceased trading on 01 August 2019. Furthermore, he knew and / or ought to have known and that the Bounce Back Loan would not provide an economic benefit to the Company as WHE Aerospace Ltd had already ceased trading at the date in which he applied for the loan. WHE Aerospace Ltd was neither entitled to claim nor receive, financial assistance from a Bounce Back Loan. Secondly and in any event, he applied for and received a Bounce Back Loan of £12,500 from Danske Bank which he knew or ought to have known the Company was not entitled to. He certified that his annual turnover was £60,000 when it was £30,846.23 for the 2019 calendar year, obtaining an additional £4,788 as a result:
- Causing and permitting the misapplication of Company funds and / or acting in a manner to benefit himself rather than the Company by using £12,500 of the Bounce Back Loan for his own personal benefit; and
- Causing and permitting the Company to fail to comply with the relevant legislation in that the confirmation statement for the year ending 23 October 2020 was never filed.
The Department has accepted one Disqualification Undertaking and the Court has made two Disqualification Orders in the financial year commencing 1 April 2024.
Notes to editors:
1. Insolvency Practitioners acting as voluntary liquidators, administrative receivers and administrators have a duty to report unfit conduct to the Insolvency Service within the Department for the Economy.
2. The aim of the Department 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 contained in the Company Directors Disqualification (Northern Ireland) Order 2002 (“the 2002 Order”) is for the protection of the public and trading community but its operation should not inhibit genuine enterprise.
3. In cases where a person is subject to either a Disqualification Order made by the Court or a Disqualification Undertaking accepted by the Department, that person shall not be a director of a company, act as a receiver of a company's property or in any way, whether directly or indirectly, be concerned or take part in the promotion, formation or management of a company unless he has the leave of the High Court. A disqualified person cannot obtain permission to act as an Insolvency Practitioner.
4. Article 9 of the 2002 Order provides that where a director is found to be unfit he must be disqualified for a minimum period of two years, up to a maximum of fifteen years. The Courts have decided that the level of seriousness of unfit conduct can fall into three brackets with the top bracket of periods over ten years reserved for particularly serious cases, six to ten years reserved for cases which do not merit the top bracket and two to five years for cases where, although disqualification is mandatory, the case is less serious.
5. The 2002 Order also allows directors, with the agreement of the Department, to avoid the need for a court hearing by offering an acceptable Disqualification Undertaking. This has exactly the same legal effect as a Disqualification Order made by the court, and will usually include a schedule identifying the director’s unfit conduct. The consequences of breaching a Disqualification Undertaking are the same as those for breaching a Disqualification Order.
6. If anybody contravenes a Disqualification Order or breaches their Disqualification Undertaking they may be committing a criminal offence and could go to prison for up to two years or face a fine or both. Any person with information to suggest that a disqualified person has acted in contravention of this provision should contact The Insolvency Service’s Directors Disqualification Unit on 028 90 548582.
7. The period of disqualification commences at the end of 21 days beginning with the day the Disqualification Undertaking was accepted by the Department.
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