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Accountants in dispute over role as liquidators
By Aodhán Ó Faoláin and Ray Managh
A dispute between two accountants over which of them has been validly appointed as liquidator to a transport company has come before the High Court.
Mr Justice Paul McDermott said yesterday he was satisfied to grant chartered accountant and insolvency practitioner John O’Connell a temporary injunction preventing Peter Russell, also a chartered accountant and insolvency practitioner of Russell & Co Trinity House, Georges Quay, Cork, from acting as liquidator of Managh International transport Ltd.The injunction was granted after the judge was informed by lawyers for Mr O’Connell, of Bank Place, Mallow, Co Cork, who claims that he and not Mr Russell is the liquidator of the company, with a registered address at Farranamanagh, Cashel, Co. Tipperary.
The company went into voluntary liquidation earlier this month.
The court heard that Mr Russell was nominated to act as liquidator by the members of the company on Aug 2 last.
The following day, at a meeting of the company’s creditors at a Co Cork hotel, a majority of creditors voted in favour of Mr O’Connell being appointed as liquidator.
Mr Russell, it is claimed, has asserted that Mr O’Connell’s appointment as liquidator is invalid and that Mr Russell has effectively staged a sit-in as liquidator.
Counsel for Mr O’Connell said that there cannot be two liquidators to the firm.
In addition, counsel said, his client has a number of concerns about Mr Russell acting as liquidator of the company.
Counsel for Mr O’Connell said his client is further seeking a declaration from the court that he is the liquidator of the company.
The interim injunction was granted on an ex-parte basis (where one side only was represented in court). The judge made the matter returnable before the High Court next week.