Friday 26 May 2017

DDDA claims resignation of McNamara undermines glass site case

Tim Healy

THE resignation in unclear circumstances of developer Bernard McNamara as a director of his company Donatex Ltd has left the firm with no directors, the Commercial Court heard yesterday.

It raises issues about its entitlement to maintain legal proceedings against the Dublin Docklands Development Auth-ority (DDDA), the court heard.

The action by Donatex and Mr McNamara relates to the November 2006 agreement with the DDDA for the €412m purchase of the Irish Glass Bottle site at Ringsend in Dublin.

Mr McNamara and Donatex Ltd, with an address at Pembroke Road, Ballsbridge, claim the DDDA had no lawful power to enter into the agreement and was unable to perform its obligations under the deal, therefore frustrating the ability of Mr McNamara and others to develop the site and leading to very substantial losses for them.

The case was before Mr Justice Frank Clarke through an application by the McNamara side for a modular trial, meaning the court would first determine the issue of whether the DDDA had the legal power to enter into the agreement.

Patrick Fox, of Clontarf Road, Dublin 3, had resigned as company secretary last November and, following searches carried out by the DDDA's lawyers, it appeared Mr McNamara also resigned, either on January 4 last or March 8.

Because a company is legally required to have two directors, the resignation of Mr McNamara raised "serious concern" as to Donatex's capacity to conduct its proceedings against the DDDA, Conor McDonnell, a solicitor for the DDDA, said in an affidavit. Mr Justice Clarke adjourned the matter to next Monday saying he wanted to keep the matter under review.

Last week, Mr McNamara resigned as director of a block of companies. The resignations are related to a number of companies that have been placed into receivership by NAMA.

Donatex was included in this block, but its inclusion may have been inadvertent and Mr McNamara is expected to seek to be restored as a director.

Irish Independent

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