Congil Construction Ltd & Companies Acts: Mannion -v- Connolly & anor [2013] IEHC 544 (28 November 2013)

Congil Construction Ltd & Companies Acts: Mannion -v- Connolly & anor [2013] IEHC 544 (28 November 2013)

The respondents failed to act responsibly from at least the latter half of 2008 by not taking steps to protect the company's creditors once insolvency was apparent, instead continuing to treat the company's assets as part of a wider business for the benefit of secured creditors and themselves. This failure meets the threshold for the imposition of the statutory five-year restriction under s.150 of the Companies Act 1990.

Citation
[2013] IEHC 544
Parties
Applicant: Declan V. Mannion; Respondent: Padraic Connolly; Respondent: Delia Connolly
Jurisdiction
Ireland
Judgment Date
28 November 2013
Procedural Posture
Application Under Companies Acts (s.150, S.56) / Judgment on Application for Restriction Order Against Directors
Outcome
Application granted; five-year restriction imposed on both respondents under s.150 of the Companies Act 1990.
Legal Topics
Director Restriction, Corporate Insolvency, Reckless Trading, Directors' Duties, Liquidation
Company Law Insolvency Director Restriction Corporate Insolvency Reckless Trading Directors' Duties Liquidation

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Parties

Declan V. Mannion

Applicant

Padraic Connolly

Respondent

Delia Connolly

Respondent

Procedural Posture

Application Under Companies Acts (s.150, S.56) / Judgment on Application for Restriction Order Against Directors

Legal Issues

  1. 1 Whether the respondents acted honestly and responsibly in the conduct of the affairs of Congil Construction Limited prior to its liquidation
  2. 2 Whether the statutory five-year restriction on acting as company directors should be imposed under s.150 of the Companies Act 1990

Ratio Decidendi

The respondents failed to act responsibly from at least the latter half of 2008 by not taking steps to protect the company's creditors once insolvency was apparent, instead continuing to treat the company's assets as part of a wider business for the benefit of secured creditors and themselves. This failure meets the threshold for the imposition of the statutory five-year restriction under s.150 of the Companies Act 1990.

Court Disposition

Application granted; five-year restriction imposed on both respondents under s.150 of the Companies Act 1990.

Orders

  • Both respondents are restricted for five years from acting as directors or secretaries of any company, except as permitted by s.150(3) of the Companies Act 1990.