Firm’s director did ‘absolute best in very tragic circumstances’

Businessman Alan Hynes has done “his absolute best in very tragic circumstances” in addressing the difficulties facing Tuskar Asset Management plc and should not be disqualified from involvement with companies, his lawyer told the High Court yesterday.

The company’s collapse had to be seen in the context of the global economic collapse and particularly the Irish property collapse of 2008, Alan Cormack argued.

The nature of the company’s investments were speculative and the risks attaching to them were set out to investors in memoranda prepared on the advice of solicitors and accountants, he said.

It was also wrong to suggest TAM plc was “a Mr Alan Hynes vehicle” as, while Mr Hynes was “very involved in it and critical to it”, it also had a board of directors and shareholders.

Counsel was making closing submissions opposing an application by Neil Hughes, liquidator of TAM plc, for orders under Section 160 of the Companies Act disqualifying Mr Hynes from involvement in the affairs of any company on grounds of alleged unfitness.

Alternatively, the liquidator says the court should restrict Mr Hynes, under Section 150 of the Companies Act, from involvement in any companies which do not meet certain capitalisation requirements.

Among various claims, the liquidator has alleged fraud against Mr Hynes, Westwinds, Crosstown, Co Wexford, who denies wrongdoing.

The hearing concluded yesterday and Ms Justice Elizabeth Dunne said she would rule on the application at a later date.

In his arguments, Mr Cormack said disqualifying Mr Hynes would have a grave effect on his right to earn a living as he was a qualified chartered accountant involved in corporate financial consultancy. The liquidator had failed to prove his various claims against Mr Hynes, including that TAM plc traded while insolvent, he said.

In affidavits, Mr Hughes claimed Mr Hynes had failed to adequately explain where €3.1m of shareholders funds went after the Tuskar group was wound up in 2009.

TAM plc was the holding company for a number of companies involved in buying and developing land for investment.