A Co Armagh woman who used a £50,000 Covid Bounce Bank Loan for her personal benefit has been banned from being a company director.
The High Court made a disqualification order of 13 years against 30-year-old Ellie McClelland, of Knockbane Road, Middletown, in respect of her conduct as director of EM Farms Ltd.
The Company was involved in mixed farming with a registered office at 9 The Diamond, Middletown.
The Company was dissolved on June 22, 2021 with an estimated deficiency as regards creditors of £50,549.86. There was a total of £1 owing as Share Capital, resulting in an estimated deficiency as regards members of £50,550.86.
The Court made the Disqualification Order against McClelland on October 17, 2024 based on the following unfit conduct which solely for the purposes of the disqualification procedure were not disputed:
– Applying for and obtaining a Bounce Back Loan of £50,000 when she knew or ought to have known that EM Farms Ltd did not meet the eligibility criteria, as the Company was not trading on March 1, 2020. She also applied for the maximum loan available of £50,000 notwithstanding the fact that the Company had no turnover from incorporation;
– Causing and/or permitting the misapplication of company funds and/or acting in a manner to benefit herself rather than the Company by using the full amount of the £50,000 received in respect of the Bounce Back Loan for her own personal benefit; and
– Failing to co-operate with the Department. She has not provided a response to the questions put to her in relation to how the Bounce Back Loan was utilised. She has acted in contravention to Article 10(5A) of the Company Directors Disqualification (Northern Ireland) Order 2002.
The Department has accepted fifteen Disqualification Undertakings and the Court has made four Disqualification Orders in the financial year commencing April 1, 2024.
