Businessman convicted over director's role
A Cork businessman today became the first to be convicted of failing to abide by a High Court order restricting his role as a company director.
William McCormack was barred from holding a directorship for five years, fined €600 and ordered to pay costs of €218.
Cork District Court found McCormack failed to comply with an earlier order restricting his work within the business world.
The High Court in Dublin had restricted the businessman, of Firgrove Park, Bishopstown, Cork, from being a company director almost three years ago, but he ignored the ruling.
Paul Appleby, director of corporate enforcement, said a number of other cases were in the pipeline to ensure company chiefs abided by the law.
“My office is determined to ensure that directors who are restricted by the High Court comply with the conditions of their restriction,” Mr Appleby said.
“All restricted directors who fail to abide by their obligations under the law are at risk of prosecution and disqualification.
“The purpose of these provisions is to deter a repetition of any irresponsible behaviour on the part of the director which could leave another set of creditors out of pocket.”
McCormack, a director of Castlewhite Wood Mouldings Ltd, had been restricted by the High Court on February 12, 2001 for five years, on the application of the liquidator of the firm.
On December 10 that year, however, he was appointed director of Redgewood Flooring Ltd and took no steps in the period to date to fund the firm to the tune of more than €60,000. The investment required from a director.
High Court restrictions prevented business people from holding directorships or being involved in the formation or promotion of any company unless the necessary funds are available.
For a public limited company the capital requirement is €317,435 and in the case of any other company, €63,487, both upfront cash payments.
