PSK Construction Ltd -v- Companies Acts [2009] IEHC 538 (07 December 2009)

PSK Construction Ltd -v- Companies Acts [2009] IEHC 538 (07 December 2009)

Mr. Killeen knowingly carried on business in a reckless and fraudulent manner by under-declaring and under-paying tax liabilities, causing loss to creditors; Ms. Higgins did not have sufficient knowledge or expertise to be deemed knowingly reckless, but both failed to keep proper books, incurring liquidation expenses; both respondents rendered themselves unfit to be concerned in the management of a company, warranting disqualification.

Citation
[2009] IEHC 538
Parties
Applicant: Tom Kavanagh; Respondent: Peter Killeen; Respondent: Lorraine Higgins
Jurisdiction
Ireland
Judgment Date
07 December 2009
Procedural Posture
Company Law Application / Final Judgment
Outcome
Application granted in part
Legal Topics
Reckless Trading, Fraudulent Trading, Directors' Liability, Disqualification, Books of Account, Liquidation Expenses
Company Law Insolvency Law Reckless Trading Fraudulent Trading Directors' Liability Disqualification Books of Account Liquidation Expenses

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Parties

Tom Kavanagh

Applicant

Peter Killeen

Respondent

Lorraine Higgins

Respondent

Procedural Posture

Company Law Application / Final Judgment

Legal Issues

  1. 1 Whether respondents were knowingly parties to reckless or fraudulent trading under s.297A Companies Act 1963
  2. 2 Whether respondents are liable for debts under s.204 Companies Act 1990 for failure to keep proper books
  3. 3 Whether respondents should be disqualified under s.160 Companies Act 1990

Ratio Decidendi

Mr. Killeen knowingly carried on business in a reckless and fraudulent manner by under-declaring and under-paying tax liabilities, causing loss to creditors; Ms. Higgins did not have sufficient knowledge or expertise to be deemed knowingly reckless, but both failed to keep proper books, incurring liquidation expenses; both respondents rendered themselves unfit to be concerned in the management of a company, warranting disqualification.

Court Disposition

Application granted in part

Orders

  • Declaration that Mr. Killeen is personally liable for company debts in a sum not exceeding €1,604,526 under s.297A Companies Act 1963
  • Declaration that both respondents are jointly and severally liable for €21,447 under s.204 Companies Act 1990 for liquidation expenses