Baileys want to act as advisers for their own firms
Published 02/05/2014 | 02:30
DEVELOPERS Michael and Thomas Bailey hope to provide consultancy services to a number of their companies from which they have been barred from managing for seven years.
The move was announced following orders disqualifying them from involvement in the management of their companies for the period.
Ms Justice Mary Finlay Geoghegan at the High Court stressed any consultancy arrangement involving the brothers and the companies must be "genuine".
There must be a genuine consultancy contract where other persons were genuinely responsible for the firms' direction and management, she said.
If the Baileys wanted to make an application later concerning any consultancy contract that they believed did not breach the disqualification orders, they could do so, the judge also indicated.
Earlier, Michael Cush SC, for the Baileys, indicated their concern was to be able to earn a livelihood – but they were anxious not to engage in any activity that might be interpreted as a breach of the disqualification orders.
They were "looking over their shoulders" at the National Assets Management Agency which the brothers' company, Bovale Developments, has been in since 2010, counsel said.
The proposed services were for the development of the companies, would be to the advantage of NAMA and had been requested by the independent boards of the companies, counsel added.
Denis McDonald SC, for the Director of Corporate Enforcement, said the range of services it was proposed to provide included mandatory services for each aspect of the business of the companies. It was for disqualified persons to seek their own legal advice on what they could or could not do, he added.
The judge yesterday formally lifted a stay imposed in December on the coming into effect of the disqualification orders, made under Section 160 of the Companies Act.
The lifting of the stay means the orders come immediately into effect – but they are conditionally permitted to deal up to September 30 with matters concerning some companies.
Last December, the judge ruled the brothers should be disqualified from acting as company directors for seven years over "particularly serious" misconduct and fraud in the conduct of the affairs of their company, Bovale Developments.
The fraud included understating their gross remuneration over a two year period by some €6m.