Directors used firm cash on expenses, court told

Directors of a Cork property development firm have been accused in the High Court of using company money to fund expenses at …

Directors of a Cork property development firm have been accused in the High Court of using company money to fund expenses at their private residences in Portugal.

Pascal Bergin, company secretary and "de facto director" of Bothwell Development, Ballinamona House, Fermoy, alleged he had been suspended from his position for "whistle blowing" on his fellow directors.

Rossa Fanning, counsel for Mr Bergin, told Mr Justice Brian McGovern his client was alleging that other directors were spending €20,000 a month from the company's bank account from their private residences in Portugal on private expenses.

Mr Fanning said Mr Bergin was also the project manager of the company and had been suspended unilaterally by one member of the company from his position "without adequate notice or adequate allegations" being made against him.

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He said Mr Bergin had been suspended on August 8th last and was facing a disciplinary meeting tomorrow.

Mr Fanning said the disciplinary hearing was a sham.

Mr Fanning said Mr Bergin had made allegations against directors of the company in the nature of a whistle blower. The directors had retaliated against him and invented charges to be brought against him which he vehemently denied.

He told the court Mr Bergin had denied the charges in detail in solicitor's correspondence, which had not been refuted, and was seeking an order restraining any disciplinary process. He said Mr Bergin was an office holder and not just an employee and was entitled to the process of natural justice.

Mr Fanning said the disciplinary process would be biased against his client as a director against whom he had made allegations would be sitting as a judge in that hearing.

He applied for an abridgment of time to allow short service of a motion on the other directors and the company to seek a court order today to the effect that the proposed disciplinary hearing tomorrow was fatally contaminated.

Mr Fanning said the defendants had been informed that Mr Bergin was making the short service application to the court "failing their deciding to back down".

Judge McGovern said it was unnecessary to go through all of the affidavit grounding the application.

He was satisfied the affidavit was true and accurate and that, broadly speaking, the circumstances were as set out by Mr Fanning in court.

The directors of Bothwell Development are registered at Companies Office as Christopher White and Michelle O'Toole, both with an address in Portugal.