News Release Page Title

11 February 2000

 

TIMBERMAN INTERNATIONAL LIMITED

TEMPLEPATRICK AND CASTLEDAWSON DIRECTORS DISQUALIFIED

On 27 January 2000 the High Court disqualified Adrian James Lawther from Templepatrick and Anthony McElhone from Castledawson from being company directors each for 7 years as a result of their conduct as directors of Timberman International Limited.

The case was brought by the Insolvency Service of the Department of Enterprise, Trade and Investment under the Companies (NI) Order 1989 which seeks to protect the public and trading community from the abuses of the privilege conferred by limited liability status.

Timberman International Limited manufactured wooden window frames from premises at Creagh Road, Castledawson from May 1992 to May 1997. It was wound up by the High Court on 16 September 1997 with an estimated deficiency to creditors of £262,629.

The matters of unfitness found by the Court and for which James Harvey was disqualified included:

  • causing Timberman to trade from April 1995 to May 1997 in the knowledge that it was insolvent and to the detriment of its creditors;
  • retention of £178,452 properly payable to the Crown in respect of VAT, PAYE income tax and National Insurance Contributions;
  • issuing cheques without due regard to the prospect of them being honoured on presentation;
  • giving preference to a creditor who was a former director by registration of a charge and transfer of lands at a time when the company was insolvent; and
  • in the case of Adrian James Lawther that he failed to submit a Statement of Affairs showing the company’s assets and liabilities.

Mr Lawther told the Court, in mitigation, that he had tried to address the financial problems faced by Timberman and had stopped taking on work with a low profit margin. He said that the company did not have an overdraft facility with its bank which meant that there were times when there were insufficient funds to cover all commitments. He also said that the transaction with the former director had been undertaken after taking advice from the company’s solicitor.

Mr McElhone did not attend Court or defend the proceedings.

 

NOTES FOR EDITORS
  1. When a company is wound up by the Court, the Official Receiver has a duty under the Insolvency (NI) Order 1989 to investigate the causes of failure and report any unfit conduct to the Insolvency Service within the Department of Enterprise, Trade and Investment.
  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 1989 Order is for the protection of the public and trading community but its operation should not inhibit genuine enterprise.

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  3. Mr McElhone has previously been a director of two other insolvent companies:

    4. John P McElhone Limited to which an administrative receiver was appointed on 9 March 1992. It had an estimated deficiency of £962,965;

    McElhone Doors Limited to which an administrative receiver was appointed on 9 March 1992. There was no Statement of Affairs prepared for this company. It was not possible to determine its exact deficiency.

  4. Article 9 of the Companies (N.I.) Order 1989 allows the Court to make a disqualification order for a period of between 2 and 15 years for unfit conduct. This is the Article used by the Insolvency Service.

5. Requests for further information should be directed to the Press Office, Department of Enterprise, Trade and Investment; Telephone 028 9052 9305.