Liquidator seeks to limit Burke's role

A HIGH Court judge may rule today on an application for an order restricting Fianna Fáil activist Joe Burke from acting as a company director for five years.

A restriction order under Section 150 of the Companies Act prevents persons acting as company directors or being involved in a company unless certain capital funding conditions are met.

The order against Mr Burke is being sought by Kenneth Fennell, liquidator of J H Burke Sons Builders, which was wound up in late 2006. Similar restriction orders have already been made against Helen Burke, Mr Burke's estranged wife and former financial controller of the firm, and against Brendan O'Reilly, former director and operations manager.

The hearing of the application concluded yesterday and Mr Justice Kevin Feeney said he hoped to rule on it today.

Mr Fennell claims Mr Burke acted irresponsibly in allowing his firm to trade for more than two years while insolvent and should have known of the extent of the firm's difficulties from 2004 onwards.

The court heard the company had traded profitably for several years but its primary business of fitting out and refurbishing bars was severely affected by the 2004 smoking ban. The firm lost contracts valued at €3 million and incurred substantial losses.

In seeking the order, Mr Gary McCarthy, for the liquidator, stressed there was no allegation of dishonesty being made against Mr Burke. The judge said the company appeared to have been a good employer.

Mr McCarthy said the liquidator was making a number of complaints, particularly that Mr Burke should have moved earlier to wind up the firm.

There was doubt over when exactly Mr Burke became aware of the true financial position of the company. Mr Burke said he was first aware of the state of affairs in autumn 2006, but the liquidator argued he should have been aware from 2004.

The complaints by the liquidator also include failure to pay Revenue and tax debts of some €279,000 and other financial oversights.

Opposing the application, Mark Sanfey SC, for Mr Burke, said a restriction order was not warranted. He said this was a reputable company until the smoking ban demolished its business. Mr Burke found himself in a fire-fighting situation and was distracted by his marital separation.

Mr Burke accepted he should have attended to the company finances more closely, but that was not his primary task within the company, Mr Sanfey said.