Liquidator spurns Taylor bid to involve directors

Tony Taylor, the founder of collapsed finance company Taylor Asset Managers, has made a number of allegations in an affidavit against other directors of the company, who include television personality Eddie Hobbs, it emerged at the High Court yesterday.

However, Paddy McSwiney, the liquidator of the Taylor companies, had no evidence that four directors - Mr Hobbs, Tom Carroll, Tom Lynch and Shirley Taylor - had acted other than honestly and responsibly, counsel for the liquidator said.

Mr McSwiney is not seeking to rely - for the purpose of proceedings brought by him under section 150 of the Companies Act against the four directors - on those aspects of Mr Taylor's affidavit which relate to his claims against those directors, counsel said.

Mr McSwiney was relying on Mr Taylor's affidavit only in relation to his proceedings against Mr Taylor himself.

Mr Taylor, whose companies collapsed in 1996 with some millions of pounds in clients' funds missing, is not arguing against restrictions being imposed upon him under section 150, his counsel told Ms Justice Mary Finlay Geoghegan yesterday.

However, counsel added, Mr Taylor had not yet indicated that the application to restrict him could be done on a summary basis because he felt it would be incumbent on him to raise matters in the proceedings brought by the liquidator.

Counsel said he was "greatly surprised" that the liquidator was not putting Mr Taylor's affidavit before the court in relation to the section 150 proceedings against the other directors. Mr Taylor had laid certain matters before the court relating to culpability of other directors, he said.

Ms Justice Finlay Geoghegan told counsel at that point that he could only challenge the liquidator's view that the affidavit should not form of his proceedings against the other directors and should not put before the court what was in the affidavit.

In light of the liquidator's position that he was not relying on Mr Taylor's affidavit in the proceedings against the other directors, Ms Justice Finlay Geoghegan said that if Mr Taylor wanted his affidavit to form part of the proceedings against the other directors, he would have to write to the liquidator setting out the basis for that.

She would give Mr Taylor an opportunity to contact the liquidator in that regard and adjourned the liquidator's proceedings to January 17th.

Mr McSwiney initiated the section 150 proceedings last July after the conclusion of criminal proceedings against Mr Taylor. Mr McSwiney is obliged to make such an application, which is procedural, even if he believes some directors acted fairly and honestly.

The proceedings arose after the collapse of the Taylor companies.

Mr Taylor was convicted of fraud in 2001 after he was located in England following his earlier absconding when the group collapsed.