Director disqualified for 10 years

One of two company directors declared by the High Court to have knowingly carried on the business of their bonded warehousing company, Eastland Warehousing Limited, with intent to defraud the Revenue, has been disqualified by the court from acting as a company director for 10 years.

Mr John McDonnell (53), Rathbeale Crescent, Swords, Co Dublin, told the court yesterday he consented to a disqualification order being made but objected to it being for a 10-year period.

Asked by Ms Justice Carroll whether he intended to act as a director again, he said he was "getting on in life". He would probably never be a director again but believed the 10-year period was severe, Mr McDonnell added. He would agree with five years but 10 years was not necessary.

The 10-year disqualification order was sought by Mr Eamon Marray, for one of the liquidators of Eastland, Mr Tom Kavanagh, against Mr McDonnell.

Counsel said the usual period of disqualification was five years but he was seeking 10 because of the nature of the issues which arose which were reflected in a High Court order of April last.

In that order, Mr Justice Lavan declared that Mr McDonnell and Mr Joseph McNamara, since deceased and formerly with an address at Clonkeen Crescent, Dún Laoghaire, Co Dublin, had knowingly carried on the business of Eastland in a reckless manner and with intent to defraud the Revenue.

The judge also held that Ms McDonnell and the estate of Mr McNamata were personally responsible for the debts and liabilities of Eastland amounting to €1,586,287. Judgment on that sum was made on consent. The legal proceedings arose after Eastland Warehousing Limited went into liquidation in 1997. The joint liquidators, Mr Kavanagh and Mr Paul Wyse, later alleged that €3.5 million in excise duties and VAT raised from wine sales had not been disclosed to the Revenue.