News Release Page Title

11 February 2000

CLASSIC HOME INTERIORS LIMITED

TWO DIRECTORS DISQUALIFIED

On 25 January and 3 February 2000 the High Court disqualified Kevin Phelan from Omagh, Co Tyrone and William Maher from Weedon, Northants from being company directors for 8 and 6 years respectively as a result of their conduct as directors of Classic Home Interiors 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.

Classic Home Interiors Limited traded mainly in the manufacture and supply of kitchens, bathrooms and conservatories from Gortrush Industrial Estate, Omagh during the period January 1991 to December 1996. It was wound up by the High Court on 29 April 1997 with an estimated deficiency to creditors of £370,256.

Counsel for both directors told the Court that his clients did not accept some of the allegations made by the Department and that certain issues remained live between the directors and the Department.

NOTES TO 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.
  3. 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.

4. Further information can be obtained from Press Office, Department of Enterprise, Trade and Investment, Telephone 028 9052 9305.