UK Government

Insolvency Service: Directors of Dalziel Park Hotel and Conference Centre disqualified following an investigation by the Insolvency Service

Press Release   •   Sep 23, 2010 13:18 BST

Following an investigation by The Insolvency Service Mr Anthony Martin Rea and Ms Nadia Wright, the directors of Dalziel Park Hotel and Conference Centre Ltd, have been banned from acting as company directors for a total of 16 years.

Following an investigation by The Insolvency Service Mr Anthony Martin Rea and Ms Nadia Wright, the directors of Dalziel Park Hotel and Conference Centre Ltd, have been banned from acting as company directors for a total of 16 years.

In the case of Mr Anthony Martin Rea, whose last known address (following extensive enquiry) was in Redcastle, County Donegal, a disqualification order under Section 6 of Company Directors Disqualification Act 1986 was made for nine years.  The order was made in the public interest with regard to his conduct as a director of Rea Property and Developments Limited and Dalziel Park Hotel and Conference Centre Limited.

Commenting on the case a spokesperson for  Company Investigations, Edinburgh said; “Mr Rea and Ms Wright both tried to hide their whereabouts from The Insolvency Service in an attempt to prevent this investigation.  The couple refused to co-operate with investigators and failed to show up in court. However the disqualifications made in their absence should offer the public and other company directors reassurance.  If you run a business in a dishonest and reckless way The Insolvency Service will remove you from the world of business.”

On 15 September 2010 the Hamilton Sheriff Court heard that Mr Rea failed to co-operate with the investigation and that as a result it had not been possible to establish if the following transactions for Rea Property and Developments Limited were legitimate:-

  • sums totalling £334,824.25 paid into the company bank account between 2 October 2006 and 3 March 2008;
  • cheque payments totalling £347,040.08 paid out of the company bank account between 2 October 2006 and 18 June 2007;
  • payments totalling £18,520.00 made to a company director on 12 October 2006 and 29 November;
  • payments totalling £53,030.00 made to another company director over the period of 8 February 2007 to 7 December 2007;
  • payments totalling £53,020.00 made to an associated company over the period 12 February 2007 to 7 December 2007;
  • on 7 February a payment of £54,000.00 to another company;
  • on 12 February 2007 the payment of £20,000.00 to an individual;
  • £11,500.00 made to another bank account on 30 January 2007;
  • £250,000.00 made to another bank account on 1 October 2007 and
  • Further payments totalling £7,150.00 made to another bank account between 17 November 2006 and 28 December 2007.

In addition the court heard that it had not been possible to verify whether or not the proceeds from the sale of Dalziel Park Hotel and Conference Centre Limited had  been dispensed for the benefit of the company and its creditors or if the transactions on the company bank account were lawful.  Specifically it was not possible to explain:-

  • why, following the sale of the company’s asset in May 2007, sums totalling £1,574,70 were paid to an associated company between 5 June 2007 and 26 November 2007;
  • the whereabouts of £600,000 representing the balance of the sale proceeds, which were due to be paid to the company within 56 days of completion;
  • the withdrawals of cheques totalling £55,700 from the company bank account between 21 September 2006 and 22 January 2007;
  • the withdrawals of cheques totalling £699,101 from the company bank account; and
  • the withdrawal of sums totalling £76,913 to connected parties.

In the case of Ms Nadia Wright, whose last known address was in Airdrie, Lanarkshire, Hamilton Sheriff Court agreed that with regard to her conduct as a director of Dalziel Park Hotel and Conference Centre Limited that she was unfit to be the director of any company and disqualified her for a period of seven years.  The court found that Ms Wright had failed to co-operate with the investigation and in the absence of the company books and records it was not possible to establish:-

  • why following the  sale of the company’s  asset in May 2007, sums totalling £1,574,720, were paid to an associated company  between 5 June 2007 and 26 November 2007;
  • the whereabouts of the sum of £600,000 representing the balance of the proceeds, which was due to be paid to the company within 56 days following the completion date of the sale of the company asset;
  • the withdrawal of cheques totalling £55,700 from the company bank account between 21 September 2006 and 22 January 2007;
  • the withdrawal of cheques totalling £699,101 from the company bank account; and
  • the withdrawal of sums totalling £76,913 to connected parties.

In the absence of any explanation, the above transactions were to the detriment of the company’s creditors which at March 2008, were owed the total sum of £80,294 representing liabilities that began accruing April 2006.

Notes to editors

1  Rea Property and Development Limited, a property developers, was incorporated on 02 June 2005.  Its last registered office was 5 Hornock Road, Coatbridge, ML5 2QA.  It is estimated that the deficiency to creditors totalled almost £324,000.00 when it was wound up on 14 August 2008.

2  The last known principal trading address for Dalziel Park Hotel and Conference Centre Limited was Colville house, Dalziel Park, Motherwell, ML1 5RZ.  At the time of it’s liquidation (1 August 2008) it was estimated that it owed it’s creditors £269,593.00

3  Without specific permission of a court, a person with a Company Director Disqualification, including Undertakings, cannot:-

act as a director of a company; take part, directly or indirectly, in the promotion, formation or management of a company; be a liquidator or administrator of a company; or be a receiver or manager of a company’s property.

Further information on director disqualifications and restrictions can be found athttp://www.insolvency.gov.uk/directordisqualificationandrestrictions/whatisdisqualification.htm

4  The Insolvency Service administers the insolvency regime, investigating all compulsory liquidations and individual insolvencies (bankruptcies) through the Official Receiver to establish why they became insolvent. The Service also authorises and regulates the insolvency profession; deals with disqualification of directors in corporate failures; assesses and pays statutory entitlement to redundancy payments when an employer cannot or will not pay employees; provides banking and investment services for bankruptcy and liquidation estate funds; and advises ministers and other government departments on insolvency law and practice.  Further information about the work of The Insolvency Service is available from http://www.insolvency.gov.uk

Contacts

NDS Enquiries 
Phone: For enquiries please contact the issuing dept 
ndsenquiries@coi.gsi.gov.uk