Former Spires Retail Park directors agree to seven year disqualification

by
Micheal McKenna
October 14, 2014

A Co Tyrone husband and wife have been disqualified from acting as directors in respect of their conduct in relation to three property development companies, including Jermon Limited, which previously owned the Spires Retail Park in Armagh.

The Department of Enterprise, Trade and Investment accepted disqualification undertakings for seven years from Peter James Dolan (51) and Jacqueline Anne Dolan (50), both of Killymeal Road, Dungannon, in respect of their conduct as directors of Jermon Limited.

The Department has also accepted disqualification undertakings for five years from both directors in respect of their conduct as directors of Jermon Properties Limited and Curragh Properties Limited.

The couple retained more than £2 million which should have been paid in tax to HM Revenue and Customs and bounced 18 cheques, worth more than £130,000.

Peter Dolan established Jermon in 1997 and it was six years later, in 2003, that the Spires Retail Park in Armagh opened.

The company crashed in January 2011.

The conduct in relation to each of the companies for which the couple acted as directors is outlined below:

Jermon Limited

Carried on the business of property development from 16 Northland Row, Dungannon, BT71 6AP and entered administration on 27 January 2011 with estimated total assets of £91,475,749, liabilities to preferential creditors of £190,772,757, liabilities to unsecured creditors of £8,403,048, and an estimated deficiency as regards creditors of £107,700,056. After taking into account the losses incurred by members (the shareholders) of the Company the total estimated deficiency was £107,700,058.

The Department accepted the disqualification undertaking from Peter James Dolan and Jacqueline Anne Dolan on 19 September 2014 based on the following unfit conduct which solely for the purposes of the disqualification procedure was not disputed:

Causing and permitting Jermon Limited to retain £1,648,273 properly due to the Crown consisting of £468,913 of PAYE due between April 2004 and April 2011, £462,777 of NIC due between April 2004 and April 2011 and £716,583 of VAT due between April 2009 and April 2011;
Causing and permitting Jermon Limited to fail to pay £352,850 properly due to the Crown in respect of Stamp Duty Land Tax between April 2004 and April 2007;
Misappropriating £115,000 of company funds or in the alternative making a preference payment to themselves or a family member of £115,000;
Causing and permitting Jermon Limited to misuse a bank account in that a total of 18 cheques with a value of £131,951 were returned unpaid by the Northern Bank and 3 cheques totalling £18,847 were dishonoured a second time;
Failing to comply with their obligations under Articles 234, 249 and 252 of the Companies (NI) Order 1986 and Sections 394, 441, 442 and 444-447 of the Companies Act 2006 in that accounts for Jermon Limited for the periods ended 30 September 2002, 30 September 2003, 30 September 2004 and 31 January 2007 were not filed on time and the accounts for the periods ended 31 January 2008, 31 January 2009 and 31 January 2010 were not filed at all.
Jermon Properties LimitedCarried on the business of property development, rental and management from 16 Northland Row, Dungannon, BT71 6AP and went into liquidation on 17 February 2011 with estimated total assets of £3,040,000, liabilities to preferential creditors of £3,601,392, liabilities to unsecured creditors of £180,532, and an estimated deficiency as regards creditors of £741,924. After taking into account the losses incurred by members (the shareholders) of the Company the total estimated deficiency was £741,927. The Department accepted the disqualification undertakings from Peter James Dolan and Jacqueline Anne Dolan on 19 September 2014 based on the following unfit conduct which solely for the purposes of the disqualification procedure was not disputed:
Causing and permitting Jermon Properties Limited to retain £108,727 in respect of VAT properly due to the Crown between April 2009 and April 2011;
Failing to file accounts for Jermon Properties Limited in respect of the period ended 31 January 2007 on time and failing to file accounts for the years ended 31 January 2008, 31 January 2009 and 31 January 2010;
Causing and permitting Jermon Properties Limited to fail to file Annual Returns in respect of the periods made up to 22 July 2005, 22 July 2007, 22 July 2008 and 22 July 2009 on time and failing to file the Annual Return for the period made up to 22 July 2010.
Curragh Properties Limited Carried on the business of property ownership and rental from 16 Northland Row, Dungannon, BT71 6AP and went into liquidation on 23 February 2012 with estimated total assets of £Nil, liabilities to secured creditors of £1,979,960, liabilities to unsecured creditors of £240,064, and an estimated deficiency as regards creditors of £2,220,024. After taking into account the losses incurred by members (the shareholders) of the Company the total estimated deficiency was £2,220,025. The Department accepted the disqualification undertakings from Peter James Dolan and Jacqueline Dolan on 19 September 2014 based on the following unfit conduct which solely for the purposes of the disqualification procedure was not disputed:
Causing and permitting Curragh Properties Limited to provide a loan of £392,603 to a connected company and in doing so misapplying the funds of Curragh Properties Limited;
Causing and permitting Curragh Properties Limited to retain £208,368 in respect of VAT properly due to the Crown between January 2008 and March 2012;
Failing to file accounts for Curragh Properties Limited in respect of the period ended 31 March 2007 and the years ended 31 March 2008 to 31 March 2011 inclusive;
Causing and permitting Curragh Properties Limited to fail to file Annual Returns in respect of the periods made up to 29 March 2007 and 29 March 2008 on time and failing to file the Annual Return for the periods made up to 29 March 2009, 29 March 2010 and 29 March 2011. The Department has accepted 33 Disqualification Undertakings and the Court has made five orders disqualifying directors in the financial year commencing 1 April 2014.