Two former directors of a Cork wedding dress company which went into liquidation last year with some 180 dresses on its order book have been disqualified by the High Court from acting as company directors for a period of five years.
The Wedding Dress Shop in Penrose Wharf, Cork, was wound up in April 2006, with debts of €1.1 million. Mr Gerard Murphy, a Chartered Accountant, was appointed liquidator on April 7th 2006. A sister store in Kenmare, Co Cork, closed in March 2006.
At the High Court today, Ms Justice Mary Finlay Geoghegan issued a restriction order under Section 150 of the Companies Act against Mrs Margaret Tobin, of Aisling, Scartbarry, Watergrasshill.
A similar five year restriction order was made last week against Ms Judith Linehan, owner of the store and company secretary, formerly of Aughadoun House, Meenane, Watergrasshill, Co Cork, but now with an address in England. Neither director opposed the application.
Today, Mr Kevin D'Arcy BL, for the liquidator, said said Mrs Tobin was not contesting the order being made under Section 150 of the Companies Acts. Ms Justice Finlay Geoghegan said she concurred with the liquidator's findings that Ms Tobin "had not acted dishonestly" but also "had not acted responsibly" in relation to the affairs of the company.
In an affidavit, Mrs Tobin, who was registered as a director of the company until November 2005, said that she had intended to quit in October 2004 but was asked to stay on until another director was found to replace her. Mrs Tobin, a school administrator, also said that she owed the banks after borrowing money to invest in the venture.
In relation to the restriction order against Ms Linehan, the liquidator said that, following an investigation of the accounts, he could not accept Ms Linehan had acted responsibly in relation to the company's affairs. However, he believed she had an honest belief that the affairs of the company could work out.
In an affidavit, Mr Murphy said Ms Linehan had invested in the company by way of property sales and had added guarantees in amounts of more than €200,000 in the 13 months before deciding to liquidate the company.
He said Ms Linehan and her husband had sold their home to "defray personal guarantees" and now lived in the UK in rented accommodation. In an affidavit to the court, Ms Linehan said that she was not opposed to the Section 150 application being made.
The company was incorporated in July 1994 with a registered office at Penrose Quay, Cork. In a statement of affairs presented to a creditor's meeting on April 7th 2006, the directors estimated the fixed assets at €4,000 and liabilities of €1.1 million.
Some 300 people, including several angry brides to be, attended the creditors meeting but many left when told there was little chance of recovering their losses. The price of dresses from the store started from about €2,000 with designer bridal outfits costing up to €7,000.