Tuesday 24 October 2017

Glenda Gilson and brother Damien should be restricted from involvement in companies - High Court

Glenda Gilson leaving court in June after winding up the company which she owned with
her brother. She was revealed to be in trouble with the taxman yesterday. COURTPIX
Glenda Gilson leaving court in June after winding up the company which she owned with her brother. She was revealed to be in trouble with the taxman yesterday. COURTPIX

Tom Healy

MODEL and TV presenter Glenda Gilson, and her brother Damien, should be restricted from involvement in companies arising from the winding up of a motor firm, the High Court heard.

The siblings, who were both in court Tuesday, were directors of Gilson Motor Company Ltd.

Its business included trading in high value vehicles, and engaging a car parking and valeting service from a pemises at Sir John Rogerson's Quay, Dublin.

In 2011, the company with a registered address, Annaly Drive, Onger Wood, Dublin 15, was wound up by the High Court after it failed to pay €141,937 in taxes to the Revenue.

Ms Gilson and her brother are listed as directors of the company and the court order was not contested by them. The court appointed Gary Lennon as liquidator.

Arising out of the liquidation, Mr Lennon wants the court to make orders under  the 1990  Companies Act seeking to have Damien Gilson disqualified from acting as a company director for five years.

Damien Gilson Pic Collins Courts
Damien Gilson Pic Collins Courts

In the alternative he seeks an order to have certain restriction imposed on Mr Gilson from acting as a company director, also for a period of five years.

In relation to Ms Gilson, Mr Lennon seeks to have certain restrictions on her involvement in a company for five years unless the firm meets certain capitalisation requirements.

She opposed the application while her brother did not. 

Brian McGuckian Bl, for the liquidator, said Mr Lennon was of the view that Damien Gilson was "unfit to be concerned in the management of a company."

He had not acted honestly or responsibly in relation to the company, counsel said.

Damien Gilson ran the business, managed all the sales, and his signature was on all the cheques, counsel said

Counsel said the liquidator was seeking the orders against the siblings on grounds including that no proper books and records were kept by the company. 

Company funds were diverted into accounts for the purpose of defrauding revenue, the main creditor of the company, for the purposes of deliberate avoidance of paying the company's taxes, counsel said.

The liquidator was also seeking orders against Ms Gilson because she had failed to take a pro active role in relation to the company.

It was accepted she had nothing to do with the running of the company, but she was "under an obligation as director to keep herself informed with regards to the affairs of the company and take appropriate actions in light of that knowledge."

Damien Gilson, who said he was currently unemployed, did not oppose the liquidator's application.

Martin Hayden SC for Glenda Gilson said his client was opposing the application on grounds including that she had "no hand, act or part" in the running of the business.  It was accepted she gained no personal benefit from it.

It was always understood that she was to be a non executive director.  She now accepted that this may not have been the most "prudent" decision, counsel added.

Ms Gilson was concerned about the impact any restrictions might have on her career in the future, he said.

Mr Justice Paul Gilligan reserved his decision.

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