An application to jail model Glenda Gilson and her brother Damien over their failure to provide adequate statements of financial affairs for a wound-up car sales company of which they are both directors was withdrawn at the High Court today.
However, Ms Justice Mary Finlay Geoghegan ruled the liquidator of the company, Gary Lennon, was entitled to the costs of bringing his motion for the Gilsons’ attachment and committal over their delay in providing those statements.
Noting Damien Gilson accepted he was primarily responsible for the running of the Gilson Motor Company Ltd, the judge ordered that Mr Gilson should indemnify his sister in relation to liability for those costs.
Both Gilsons were in court today.
The judge said, while the court was told Ms Gilson had become a director to oblige her brother and it was not unusual for family members to do so, people who agreed to that took on a significant responsibility.
The fact Ms Gilson may have not have had anything to do with the day-to-day running of the company did not exempt her from that responsibility, the judge said.
Earlier, counsel for the liquidator told the court revised statements of affairs had been provided by the Gilsons and he was no longer seeking their attachment and committal. Counsel said he was seeking the costs of the application which had been before the court on a number of occasions.
Lawyers for both siblings objected to costs orders against them and said there had been engagement and co-operation with the liquidator.
In her ruling on costs, Ms Justice Finlay Geoghegan said it appeared to her the liquidator was not precipitous in bringing the attachment and committal application.
At this stage, the Gilsons had faced up to their responsibilities and the court would grant costs to the liquidator because otherwise they would have to be borne by the creditors, she said.
The judge adjourned the case for a year after hearing a separate application by the liquidator to have the Gilsons examined before the court did not need to proceed because both had undertaken to attend the liquidator’s office to answer any questions in relation to their financial affairs.
The court also heard Mr Gilson had agreed to provide the liquidator within three weeks with a sum of €4,742 held in a company bank account.
Last March, the Gilson Motor Co, Annaly Drive, Onger Wood, Dublin 15, was wound up by the High Court after failing to pay €141,937 in taxes to the Revenue. That order was not contested by the Gilsons and the court appointed Mr Lennon as liquidator and ordered both Gilsons to file a statement of affairs within 21 days.
Last May, counsel for the liquidator told the Examiner’s Court there had been a failure to file that statement of affairs.
Ms Justice Finlay Geoghegan granted a number of adjournments of the matter but previously warned it was extremely serious that the directors were not complying with their obligations.