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County Down director agrees to disqualification

The Department for the Economy (the Department) has accepted a disqualification undertaking from the director of a company involved in repair and maintenance of aircraft and spacecraft.

Director Disqualification undertaking.

The undertaking was received for twelve years from Kevin Andrew Magee (42) of Ballycrochan Avenue, Bangor, in respect of his conduct as director of KMAerospace Ltd (“the Company”).

The Company was engaged in the 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 1 November 2021 with an estimated deficiency as reported by creditors of £57,765. There was a total of £1 owing as Share Capital, resulting in an estimated deficiency as regards members of £57,766.

The Department accepted the disqualification undertaking from Kevin Andrew Magee on 17 June 2024 based on the following unfit conduct which solely for the purposes of the disqualification procedure was not disputed:

  1. Providing a false and misleading declaration within his application form with Starling Bank. He applied for the second Bounce Back Loan, just 8 days after applying for the first Bounce Back Loan. To do so, he signed a declaration that the Company had not already received a Bounce Back Loan. This resulted in KMAerospace Ltd obtaining the benefit of an additional £25,000, to which the Company was not entitled. Secondly and in any event, he applied for and received a Bounce Back Loan of £25,000 from HSBC which he knew or ought to have known the Company was not entitled. Further, and in any event, he certified that his annual turnover was £103,000 when it was estimated at £70,764 for the 2019 calendar year, obtaining an additional £7,309 as a result; and
  1. Causing and/or permitting the misapplication of company funds and/or acting in a manner to benefit himself rather than the Company by using the Company turnover and/or the Bounce Back Loan to pay himself a significant increase in salary when the Company’s turnover had decreased . If he had not paid himself this increased salary, KMAerospace Ltd would have had additional money available to repay all creditors in full.

The Department has accepted five Disqualification Undertakings 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.

8. To keep up to date with news from the Department for the Economy you can follow us on the following social media channels:

9. For media enquiries contact the Department for the Economy Press Office at [email protected]

10. The Executive Information Service operates an out of hours service for media enquiries only between 1800hrs and 0800hrs Monday to Friday and on weekends and public holidays. The duty press officer can be contacted on 028 9037 8110.

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