Flynns Factory, Roslea
A DIRECTOR of a well known Fermanagh food company that went into administration after amassing debts of over £2.5 million had been “misappropriating” company assets , it has been revealed.
The Department of the Economy this week confirmed directors of meat processing company Flynn Foods in Roslea had been disqualified from sitting as directors or managing a company for the next number of years due to “unfit conduct.”
Last month Ann Teresa Flynn (63) of Magherarney, Smithboro and Micheal Gerard Flynn (35) of Mullitagorry, Smithboro, agreed to disqualification orders of four years and 11 years, respectively. The orders were issued in regard to their conduct as directors of the company registered as Empire Meats Ltd and trading under the name of Flynn Fine Foods based at Dernawilt Road, Roslea and Derryvollen, Roslea.
The Department said it had accepted the disqualification undertaking from Ms Flynn based on unfit conduct that was not disputed “solely for the purposes of the disqualification procedure.” Examples of misconduct by Ms Flynn included “failing to inform herself of the company’s affairs and therefore failing to prevent and inhibit Micheal Gerard Flynn from misappropriating and/or seeking to put assets beyond the reach of the joint administrators and failing to account for all assets of the company.”
According to the Department she also failed to comply with her duties as director by failing to provide adequate oversight and control in insuring sufficient corporate governance, and failing to ensure the company filed its accounts on time.
With regard to Mr Flynn, the Department stated he too had not disputed the claims of unfit conduct for the purposes of the disqualification.
This unfit conduct included failing to supervise and properly control the management of their debt purchase scheme “thereby causing or permitting the generation of fictitious invoices” and “causing or permitting unauthorised advance of monies from a financial providers”.
Mr Flynn is also said to have failed to account for all assets of the company and “misappropriating and/or seeking to put assets beyond the reach of the joint administrators”, as well as allowing the company to “misuse bank accounts by presenting cheques, direct debits and standing orders to the bank without due regard to there being sufficient funds available to honour same.”
Flynn Foods went into administration in September 2013 with an estimated total assets available for creditors of £822,174. The total owed to creditors by the company was estimated to be over £2,520,000.
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