Former NIB chief to be disqualified as conduct deemed ‘grossly negligent’

THE High Court has ruled that the conduct by former National Irish Bank chief executive Jim Lacey of various aspects of the bank’s affairs was “grossly negligent” and he should be disqualified from involvement in the management of any company on grounds of unfitness. The period of disqualification will be decided later.

Mr Justice Roderick Murphy found various breaches of duties by Mr Lacey as chief executive and director of NIB between 1988 and 1994 were “grossly negligent” and ruled his conduct fell below the required standard and “constituted a fundamental failure of governance”.

He was delivering his lengthy reserved judgment granting an application by the Director of Corporate Enforcement for a disqualification order against Mr Lacey under Section 160 of the Companies Act.