TWO directors of a Longford construction company (in liquidation) were prevented by High Court order yesterday from acting as company directors for a period of five years.

The directors, Mr Eugene O'Reilly, Farnagh Hill, Longford, and Mr Padraig Nolan, Ferefad, Longford, had proceedings brought against them by Mr David M. Hughes, liquidator of E.R Nolan Contractors (Longford) Ltd. Mr Hughes estimated the deficiency to creditors at £1.027 million.

Miss Justice Mella Carroll said the liquidator's affidavit showed the directors failed to keep proper records, failed to hold annual meetings or file annual returns It appeared that duplicate or even treble records were kept.

The judge said the directors had not satisfied her they acted honestly and responsibly in relation to the conduct of the affairs of the company and she made a declaration under the 1990 Companies Act that Mr O'Reilly and Mr Nolan shall not for a period of five years act as directors of any company.

Mr Hughes, who was appointed liquidator last January, said that in the three years before liquidation the company became involved in speculative building. It appeared the company prepared different sets of accounts for the same year end. For 1991 the account issued to the Revenue showed accumulative profits of £12,195. A second set in company files showed accumulated profits of £124,933.

The second set included an auditor's report. The auditor in question, Mr John Browne, of College Park, Longford, had confirmed the signature on the accounts was not his signature. Both directors denied any knowledge of the existence of a second set of accounts and were unable to advise how Mr Browne's signature appeared on the accounts.

Mr Hughes said there appeared to be three sets of management accounts prepared for the two years ended December, 1993. One set showed a profit of £168,856; a second set, issued to the Revenue, showed a toss of £42,348, and a third set on computer paper showed a profit of £273,195.

Mr Hughes said the directors had confirmed there were not other subsidiary or related companies. The Companies Office file showed company, Ballyna Estates Ltd., as being owned by Mr O'Reilly and Mr Nolan.

It appeared eight sites were sold by E.P. Nolan Contractors to Ballyna Estates for £45 000 and that same company also sold the development of six houses at Camlin Mews to Ballyna Estates for £191,984. The contracts between E.P. Nolan Contractors and Ballyna Estates were signed by Mrs Marie O'Reilly and Mrs Teresa Nolan.