A director of a property company has alleged his two fellow directors, including west- Dublin based Moritz group founder Michael Whelan, allowed a €5.3 million debt to be built up to that company by another firm of theirs when they knew it could not be paid.
Seán Connolly is seeking to bring an action on behalf of Seskin Properties Ltd against Mr Whelan and his son Michael J Whelan over allegedly allowing their company Maplewood Developments to build up a €5.3 million
debt to Seskin when they allegedly knew Maplewood could not pay. On the application yesterday of Bill Shipsey SC, for Mr Connolly, the proceedings were transferred by Mr Justice Peter Kelly to the Commercial Court.
Mr Connolly, a 49 per cent shareholder in Seskin, claims the Whelans were controllers of Seskin and directors and shareholders of Maplewood. Moritz Property Investment later acquired Mr Whelan’s shares.
Mr Connolly says it is in Seskin’s interests that he is allowed to bring a derivative action – an action on behalf of a company – against the Whelans and Maplewood over the debt.
