An official liquidator to a Limerick company was removed by the High Court yesterday because he failed to disclose he was restricted from acting as a company director by the court and that he had been censured by the Institute of Chartered Accountants in Ireland (ICAI).
Ms Justice Finlay Geoghegan said the declaration of a restriction of itself did not prevent Brian Boland being appointed official liquidator nor did the fact that he was censured by his professional institute. However, they were relevant facts that should have been considered by the High Court when it was deciding whether or not Mr Boland was a fit and proper person to be appointed official liquidator.
It might well be that on a full examination of all relevant facts the court would have appointed him, she added.
On February 28th last, Ms Justice Laffoy, appointed Mr Boland of Pery Square, Limerick, as official liquidator to Trinity Products (Limerick) Ltd, a packaging distribution company, with a place of business at Rossmada Business Park, Ballysimon Road, Limerick.
The appointment had been made following a petition brought by Marion Foam Ltd with registered offices at Annacotty, Co Limerick.
Yesterday, Ms Justice Finlay Geoghegan removed Mr Boland. She appointed another liquidator but emphasised that in reaching her conclusion she was not deciding that Mr Boland was unfit to act as official liquidator.
The situation had arisen because of a failure by Mr Boland and his solicitor to "make appropriate disclosure to the court and the petitioner of relevant matters at or prior to his appointment".
The judge said that, notwithstanding the support of the petitioner for the continuation of Mr Boland as official liquidator, she had concluded that it was now "for the better conduct of the liquidation that Mr Boland be removed".
She appointed the petitioner's alternative nominee, Anthony J Fitzpatrick.
Ms Justice Finlay Geoghegan said that, in accordance with settled practice of the High Court at the hearing of petition, the court had written confirmation from Mr Boland of his willingness to act and an affidavit from a Limerick solicitor as to Mr Boland's suitability for the job.
Following the order of February 28th, a director of Trinity Products, John Carroll, became aware that a declaration of restriction under section 150 of the 1990 Companies Act had been made by the High Court in respect of Mr Boland and that he had been the subject of censure and a fine by the ICAI.
In reply to Mr Carroll's solicitor, Mr Boland confirmed the restriction arising out of his directorship of a company, Phoenix. He explained he had filed an affidavit confirming he had done nothing wrong and had consented to the declaration of restriction to avoid costs. He also confirmed that, following the restriction, he had been censured by the accountants' body.
Ms Justice Finlay Geoghegan said that, when the matter came before her, Mr Carroll said he objected to Mr Boland continuing and Mr Boland said he was concerned to have the matter decided as Mr Carroll was not co-operating with the liquidation.
Mr Boland maintained his professional standing was not affected and his right to practise as an accountant and registered auditor remained unaffected. He also confirmed he was in good standing with the ICAI.
