The High Court has dismissed the Revenue Commissioners’ challenge to decisions made at a creditors’ meeting for Ladaney Limited, upholding the appointment of Anthony J. Fitzpatrick as liquidator.
Mr Justice Herbert ruled that Revenue could not vote on its claimed debt of €371,785 because the amount remained unascertained while the company’s statutory appeal against Revenue’s assessments was pending. The court said the chairman was entitled to refuse the proof for voting purposes. The judgment records the company’s tax appeal, but does not decide the underlying tax liability.
Revenue had appealed the chairman’s decision at the 15 July 2014 creditors’ meeting to disallow its proof for voting. It also challenged the acceptance of proxies submitted by five creditors and sought to replace Mr Fitzpatrick with Barry Donohue. In the alternative, it asked for the company to be wound up under court supervision.
The judge found that proxies submitted by Michael Walsh and Son Limited, Roken Construction Limited, O’Hara Dolan and Company Limited, and Avonlee Soap Company Limited did not meet the required execution formalities and should not have been accepted. He found the proxy for Devery Farrell and Company valid, as was the proxy for former employee Mary Molyneaux. The valid proxies and creditors present in person who were entitled to vote formed the majority in value supporting Mr Fitzpatrick’s appointment.
Mr Justice Herbert rejected the request to replace the liquidator. He said the fact that Mr Fitzpatrick had initially been nominated by the company was not enough to suggest he would favour the company or its members over creditors. The court found no reason to doubt he would complete the liquidation properly under the supervision of the creditors’ committee of inspection, which included Revenue.
The judge also refused court supervision, citing the company’s paucity of assets. The court dismissed the application.