The Department of Enterprise, Trade and Investment has accepted disqualification undertakings from the director of a property development company.
The undertakings for eleven years were received from Philip Wright (46) of Langtry Lodge, Moira in respect of his conduct as a director of Philip Wright Developments Limited.
The Company carried on the business of property development and sale, entering administration on 28 October 2010 no assets, liabilities to secured creditors of £2,449,572, liabilities to unsecured creditors of £224,910, and an estimated deficiency as regards creditors of £2,674,482.
After taking into account the losses incurred by members (the shareholders) of the Company the estimated total deficiency was £2,674,483.
The matters of unfit conduct alleged by the Department of Enterprise, Trade and Investment (the Department) in relation to Philip Wright in respect of his conduct as a director of the Company and accepted by the Court were:
· Misleading a creditor as to the extent of the Company’s property portfolio in order to obtain finance and in so doing misleading the creditor as to the company’s true financial position and therefore its ability to honour the significant liabilities to the creditor;
· Providing false and misleading information to the Administrator, thereby causing the incursion of further costs in the administration of the Company to the further detriment of the secured creditor;
· Causing and permitting the Company to file false and misleading accounts in Companies House and, in doing so, disguising the true extent of the Company’s insolvency;
· Attempting to defraud the secured creditor by causing and permitting the Company to offer up invalid security and misleading the creditor as to the extent of the Company’s property portfolio;
· Causing and permitting the transfer of land owned by the Company at a material undervalue to the detriment of the secured creditor.
The Department has accepted 46 Disqualification Undertakings and the Court has made nine orders disqualifying directors in the financial year commencing 1 April 2014.