The boss of an aircraft repair company in Co Antrim has accepted a boardroom ban over his use of company funds
The boss of an aircraft repair company in Co Antrim has accepted a boardroom ban over his use of company funds.
Richard Ryan (61), of Killaughey Road, Donaghadee, accepted the seven-year disqualification undertaking over his conduct as a director of RGR Contracts Ltd.
The company had a registered office at 2 Market Place in Carrickfergus and went into liquidation in October 2021 owing £26,528 to creditors.
The Department for the Economy (DfE) carries out disqualification proceedings following investigations by Insolvency Service.
According to DfE, Mr Ryan accepted unfit conduct involving misapplying company funds by acting in a manner to benefit himself rather than the company.
He had used the company turnover or the bounce back loan – a form of emergency lending available to companies during the pandemic – to pay himself a significant increase in salary even though turnover had fallen.
According to DfE, “if he had not paid himself this increased salary, RGR Contracts would have had additional money available to repay all creditors in full”.
The department said that it had accepted four disqualification undertakings since April 1, with the court making two disqualification orders since the same date.
DfE said that after a company goes out of business through insolvency, insolvency practitioners such as administrators or liquidators have a duty to report unfit conduct to the Insolvency Service.
Disqualification proceedings are carried out against directors of failed companies “who have abused the privilege of limited liability status through negligence, incompetence or lack of commercial probity,” DfE said.
