THE SUPREME Court has made an order restricting a former executive director at National Irish Bank in his involvement with companies for five years.
However, on foot of the court’s decision last month to overturn a nine-year disqualification order imposed by the High Court on Barry Seymour, the Office of the Director of Corporate Enforcement was yesterday awarded just 50 per cent of the very substantial costs – estimated at more than €1 million – of his proceedings against Mr Seymour.
The three-judge Supreme Court previously ruled Mr Seymour’s conduct of NIB’s affairs while an executive director between 1994 and 1996 did not justify the High Court making an order disqualifying him from involvement with any company for nine years over “lack of a proper standard of conduct” at NIB.
The director had failed to show that actions or omissions of Mr Seymour amounted to negligence or incompetence of the high degree necessary for a disqualification order, the court ruled.
However, a “grave failure” by Mr Seymour to ensure DIRT payments were properly returned to the Revenue might justify a less draconian order, it said.
The case was adjourned to yesterday to make final orders, to consider the effect any such orders would have on Mr Seymour’s charitable activities and to decide costs.
Michael Collins SC, for Mr Seymour (in his late 70s, from Amersham, Buckinghamshire, England) said his client’s charitable activities involved unincorporated bodies and would not be affected by the orders contemplated.
Mr Collins argued Mr Seymour had effectively won the case. All the time and argument involved had focused on issues the director lost and his client should get his costs in both the High and Supreme Courts against the director.
Brian Murray SC, for the director, Paul Appleby, said he should get costs against Mr Seymour because, although the order being granted was a restriction order, it was still being made under the court’s lesser discretionary power under section 160(9a) of the Companies Act.
The court had found a “grave” failure on the part of Mr Seymour and this, plus the findings of the NIB inspectors and the public interest in enforcement of proper corporate standards, entitled the director to the costs, he argued.
The Chief Justice, Ms Justice Susan Denham, noted Mr Seymour had not entirely succeeded as there was still a finding of fault made against him and a restriction order was being granted.
The court made the five-year restriction order, to date from December 6th, 2011. The court also set aside the High Court order awarding the director his costs and substituted an order awarding 50 per cent of the High Court and Supreme Court costs to the director against Mr Seymour.
