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Former low cost liquidator disqualified for 6 years
27 January 2012
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In the case of Hunter Marshal Limited, liquidator Ken Fennell successfully brought disqualification orders pursuant to Section 160 against the Directors of the recruitment firm.
Hunter Marshal Limited was placed in liquidation in 2009 with estimated excess liabilities of over €1.6 m. The Company was at one stage, a sizeable enterprise employing approximately 70 people prior to its decline.
In his sworn affidavit, Mr. Fennell outlined the principal reasons for the liquidation of the Company as the collapse in turnover, failed cost cutting measures and significant increases in rental and refurbishment costs however Mr. Fennell also cited very serious concerns regarding insolvent trading and the “deliberate and systematic” under declaration and under payment of taxes to the tune of €1.5m over a two year period.
By Richael O'Brien
The Directors denied accusations that the Company was trading while insolvent, citing the optimism felt due to potential growth in their expansion into the recruitment market in the Middle East however, due to the downturn in this industry, this new market was never to materialise. In light of the losses being incurred and the extent of the insolvency of the Company, Mr. Fennell was of the opinion that there was little possibility that this source of work would have grown sufficiently to address the insolvency of the Company.
For one Director, Mr. John Barry, placing Hunter Marshal Limited in liquidation became an opportunity for a new business, as a liquidator.
Operating out of offices on D’Olier Street, Barry & Partners were successful in gaining over 80 appointments to insolvent Companies. While Irish Company law does not lay down any qualification requirement to be a Liquidator, they are usually practicing accountants, and as such, are regulated by their relevant professional body. Bankrupts, as well as those subject to restriction or disqualification orders are prohibited from being liquidators, receivers or examiners.
People may also be disqualified from acting as liquidators, receivers or examiners for a certain period if a court has found them guilty of fraud or serious misconduct. Prior to the Monday’s disqualification hearings, Mr. John Barry had already resigned from all his appointments.
The periods of disqualification given to the directors by Justice Finlay Geoghegan were; 7 years for Des Barry, 6 years for John Barry, 4 years for Susannah Barry and 4 years for Don Edward Barry.
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