Court disqualifies director of freight transport company

A DIRECTOR of a freight transport company has been disqualified for a five-year period by the High Court from involvement in the management of any company.

Mr Justice Peter Charleton yesterday made the disqualification under Section 160 of the Companies Act against David Kavanagh, a director of Kamar Transport Ltd (in liquidation), with an address at Ecklands, Carne Hill, Loughshinny, Co Dublin.

He also made restriction orders under Section 150 of the Companies Act in relation to Mr Kavanagh. These and other orders were sought by Kamar's liquidators, Thomas Moore and Barry Forrest. The hearing of the application was fixed for yesterday, but the judge was told by Gary McCarthy, for the liquidators, that the case had been compromised on terms including Mr Kavanagh's agreeing to disqualification and restrictions orders being made.

Kamar was incorporated in late April 2003 by Mr Kavanagh and David Maher. It began trading in June 2003 and was put into liquidation on April 14th, 2004. It operated freight transport distribution across Ireland and traded as KCK and KCK Express Couriers. Another firm, Kamar Transport (Kilkenny) Ltd, incorporated by Mr Kavanagh in September 2003, was also put into liquidation in April 2004. He was also a director of SOS Couriers Ltd, which went into liquidation in 1998.

The liquidators had sought the disqualification order on a number of grounds, including Mr Kavanagh's alleged failure to ensure proper books and records were kept. They said the books and records available did not explain how a firm that traded for nine months had accumulated a deficit of over €600,000.

The liquidators also alleged that, at the time of liquidation, there were insufficient funds to pay the claims of employees of Kamar Transport and the Department of Enterprise, Trade and Employment had to pay €160,752 from its social insurance fund.