Pound shop chain fined for failure to keep full accounts

The directors of a company which owns the chain of Pound World Shops were each fined £250 (€317) yesterday for failing to maintain proper accounts.

Mr Charles "Ray" Henderson, Howth Road, Sutton, and Mr Paul Hamill, Herbert Park, Donnybrook, both Dublin, denied failing to comply with Section 202 of the 1990 Companies Act requiring the keeping of proper books of account which correctly record the transactions of the company. Their firm, Hamill and Henderson Ltd., was also fined £500 for the same offence.

Dublin District Court heard they had been trading as a partnership until 1996 when they were advised to establish a company to protect themselves. The business was split with some of the shops run under the company name and others under the partnership.

In the first year of the new arrangement, they failed to maintain a cash sheet relating to transactions of nearly £2.5 million and £272,000 worth of assets were transferred to the company which the auditors, Peelo and Partners, were unable to establish as correct.

Auditor Ms Marie Porter of Peelo and Partners told the court that, as a result, it was not possible to distinguish between partnership trading and company trading. She notified the Companies Office and yesterday's prosecution ensued.

The financial controller of Hamill and Henderson, Mr Declan Malone, said there had been teething problems resulting from the change in status. Since then all matters had been rectified and all assets and liabilities can be independently identified between the company and the partnership.

Mr Malone, who failed his final year exams to become a chartered accountant before he was appointed full-time financial controller of Hamill and Henderson in 1991, believed the auditor could have tried "other methods" to get the level of confidence she required in the books.

Mr Hamill said he believed they were doing everything to comply with the law and that he had a competent person running the financial affairs of the company.

Judge Leo Malone said he found the company and the directors were guilty of the offences. As well as the fines, he ordered them to pay £432 witness expenses and £500 legal costs. He fixed recognisances for leave to appeal.