A SIGNIFICANT number of cheques drawn on a company that had ceased trading were paid to its directors or related companies, the High Court has been told.
Barrister Bernard Dunleavy said building developer Tson Ltd, formerly Barnmore Ltd, had called a meeting of shareholders on September 6th last and decided on a voluntary winding up of the company, appointing accountant Barry Forrest as liquidator.
He said AIB was owed €1.3 million by Tson and, on the basis that the voluntary liquidation was invalid, was itself petitioning for the winding up of the company which had its registered office at Fairview Strand, Dublin.
Mr Dunleavy told Mr Justice Paul Gilligan the two shareholders were Brendan O’Halloran, company secretary, and his late father, Henry O’Halloran. Brendan and his fellow director and brother, Patrick, had decided to liquidate the company and at a shareholders meeting a purported proxy vote arising from the estate of Henry O’Halloran had been granted to Brendan by Eileen O’Halloran on behalf of the estate.
Mr Dunleavy said the bank had discovered no grant had been issued for the administration of the late Mr O’Halloran’s estate, and as Ms O’Halloran had no right to represent the estate, the proxy signed by her had been of no effect. As a result, the purported shareholders’ meeting was not quorate and no valid resolution to liquidate could be passed to appoint Mr Forrest as liquidator.
Mr Dunleavy earlier told the court the bank had discovered the drawing down of a significant number of cheques in favour of the directors and related companies. The company directors were now not opposing the petition to wind up the company. Judge Gilligan appointed Aiden Murphy, chartered accountant, as liquidator on behalf of the bank.