Court puts freeze on tech firm owners
A COUPLE have been ordered by the High Court not to reduce their assets below €1.2m over what a liquidator claims was the fraudulent transfer of assets of their company to a UK firm.
Joseph Martin Dowling and Margaret Bernadette Dowling, directors of CU Plus Technologies (in voluntary liquidation) must not reduce assets, inside or outside the State, pending a further order.
Myles Kirby was appointed liquidator of CU Plus, which provides computer systems for banks and financial institutions, in 2014. Since taking over, he has discovered a deficit of €2.28m in the accounts, Gerard Meehan BL, instructed by Paul Barry solicitor, on behalf of the liquidator, told the court.
The company traded well until 2012 when it had a turnover of €4.2m. But by the start of 2013, turnover "fell off a cliff." By December 2013, it was unable to pay staff, counsel said. Its debts included €600,000 to Revenue.
Of most concern was the transfer of some €1.2m of business in the second half of 2013, which had previously formed part of the Irish operation, to a company in Britain, called CU Plus UK.
Counsel said it was the liquidator's view this money had been fraudulently transferred.
Mr Justice Paul Gilligan granted an injunction preventing the Dowlings from reducing their assets below €1.225m and said the case could come back before him next week.