The High Court has ruled that an affidavit by Tony Taylor, founder of the collapsed finance company Taylor Asset Management, cannot be used in court proceedings brought against the other directors by the liquidator of the Taylor companies.
Mr Taylor has made a number of allegations in his affidavit against four other directors of the company, who include the television personality Eddie Hobbs.
Liquidator Paddy McSwiney previously told the court that he proposed not to rely on that affidavit for the purpose of his proceedings against the other directors, brought under section 150 of the Companies Act. Mr McSwiney said he proposed to rely on the affidavit only for the proceedings brought against Mr Taylor himself.
Mr McSwiney is obliged under the Companies Act to bring proceedings against the directors of Taylor Asset Management and his counsel had previously told the court that there was no evidence that the other four directors - Mr Hobbs, Tom Carroll, Tom Lynch and Shirley Taylor - had acted other than honestly and responsibly.
In the High Court yesterday, Ms Justice Mary Finlay Geoghegan said she had concluded that Mr McSwiney was "not obliged to rely upon" Mr Taylor's affidavit in the proceedings against the other directors.
While the liquidator had not explained why he did not seek to rely on Mr Taylor's affidavit, he was under no obligation to do so, the judge said. Mr Taylor was not a party to the applications by Mr McSwiney in relation to the other directors and could not be joined to those.
A judge hearing an application under section 150 has no supervisory role in relation to how the liquidator runs the case, she said. She added that in reaching her decision she had not considered the affidavit of Mr Taylor.
Mr Taylor, whose companies collapsed in 1996 with millions of pounds in client funds missing, and who was convicted of fraud in 2001 after he was located in England following his earlier absconding, is not contesting the restrictions against him, the court heard previously.
However, it was stated that Mr Taylor had put certain matters before the court relating to culpability of other directors.
Counsel for Mr Hobbs told an earlier hearing that the liquidator was correct in deciding not to use Mr Taylor's affidavit and said it contained contents that were a "rehash" of allegations which had previously been made against Mr Hobbs.
Mr McSwiney initiated the section 150 proceedings last July following the conclusion of criminal proceedings against Mr Taylor. The liquidator is obliged to make such an application, which is procedural, even if he believes that some directors acted fairly and honestly.
