For Immediate Release - Director of Corporate Enforcement

For Immediate Release

ODCE Secures Three Director Disqualifications for 12, 8 and 6 Year Periods

“Directors of multiple struck-off companies face long periods of disqualification”
- Director

The Director of Corporate Enforcement has today (Monday, 19 February 2007)
secured from the High Court:

• a twelve year disqualification of Martin Allen of Glebe Cottage, Enfield, Co.
Meath who was a director of eight companies at the time they were
involuntarily struck off the Companies Register. The companies in question
were Champion Telecom Limited, Diamond Telecom Limited, Foxburg
International Limited, M Allen Magazine Publishers Limited, Ovid Print
Media Limited, The Minute Business Limited, Thorin International Limited
and European ICT Resource Facilities Limited;

• an eight year disqualification of Peter Banks of Hill House, Hill of Allen, Co.
Kildare who was a director of four companies at the time they were
involuntarily struck off the Companies Register. The companies in question
were Diamond Telecom Limited, Foxburg International Limited, Ovid Print
Media Limited and Thorin International Limited;

• a six year disqualification of Thomas Donoghue of 18 Ballinderry Orchards,
Ballinderry, Mullingar, Co. Westmeath who was a director of three companies
at the time they were involuntarily struck off the Companies Register. The
companies in question were Specified Aluminium Systems Limited, N.V.
Renson (Ireland) Limited and Seam-Ireland Limited.

Costs were also awarded to the ODCE. The directors did not defend the legal actions.

In commenting on the High Court decisions, Mr Appleby said:

“The cases before the High Court today involved directors who were
associated with multiple companies that had been struck off the Companies
Register for failing to submit annual returns and where, in some cases, there
was evidence of substantial liabilities to creditors. What was different about
today’s cases was that evidence of persistent and/or serial abuse of company
law obligations was before the Court.

Previously, all similar ODCE disqualification cases have involved single
struck-off companies. The High Court has consistently accepted that in the
absence of mitigating factors, disqualification for five years was appropriate
in the light of the serious concern of the Oireachtas about the practice
whereby, to the detriment of creditors, insolvent companies are allowed by
their directors to be involuntarily struck off the Companies Register.

In today’s cases, the Court has accepted that aggravating circumstances may
lead to disqualification periods in excess of five years particularly where there
is evidence of persistent unscrupulous behaviour by directors who walk away
from insolvent companies and allow them to be involuntarily struck off.

I am pleased to acknowledge that information relating to some of these cases
came to our attention via public complaints from employees and other
creditors of the companies. While disqualification will not usually result in
the persons involved receiving payment of their outstanding debts, it does
mean that the delinquent directors are prevented from disrupting commercial
markets for a number of years in the future.

This result reinforces the message that company directors can no longer
abandon an indebted company, fail to comply with statutory filing obligations
and leave it to be involuntarily struck off the Companies Register. We will
continue as best we can to target significant cases of suspected serious
misconduct.

Every effort should be made by directors to discharge all of the company’s
liabilities or to formally liquidate the company. These types of actions seek to
improve legal compliance, support the interests of creditors and contribute to
improved conditions for future enterprise development.”

19 February 2007
Ends/

Editor’s Note

In the Company Law Enforcement Act 2001, the Director of Corporate Enforcement
was given investigative and enforcement powers in respect of all insolvent companies,
whether they were in liquidation or not. Under section 160(2)(h) of the Companies
Act 1990 (as amended by section 42(b) of the 2001 Act), the Director may seek the
disqualification of the directors of a dissolved company which has been involuntarily
struck off the Register.

In section 160(3A), directors may successfully defend an application for
disqualification by demonstrating to the High Court that the company had no
liabilities at the time of involuntary strike-off or that any such liabilities were
discharged before the date of the making of the disqualification application. Where it
deems that a sanction is appropriate, the Court has discretion to either disqualify the
director for such period as it deems fit or restrict him or her for a five year period.

The High Court decisions in the Clawhammer Limited, Shinrone Food Market
Limited and Cautious Trading Limited cases dating from 15 March 2005 set down the
Court’s approach to strike-off cases. These original cases and some 20 subsequent
ones pursued by the ODCE covered instances of single companies being struck off.
Today’s cases involved for the first time multiple companies being struck off.

In the case of Mr Allen, eight companies were struck off prior to the proceedings. In
the case of Mr Banks, four companies were struck off the Register. In the case of Mr
Donoghue, three companies had been struck off.

Following the Court’s decision, the names of Mr Allen, Mr Banks and Mr Donoghue
will shortly be added to the CRO list of disqualified persons.

Consequences of Disqualification
The consequence of a High Court disqualification is that a person is prohibited from
being appointed or acting as an auditor, director or other officer, receiver, liquidator
or examiner and is prohibited from being in any way, whether directly or indirectly,
concerned or taking part in the promotion, formation or management of any company
or industrial and provident society.

Consequences of Restriction
The consequence of a High Court restriction is that a person is prevented from being a
company director or secretary or being involved in the formation or promotion of any
company, unless it is adequately capitalised. In the case of a public limited company,
the capital requirement is €317,435, and in the case of any other company, €63,487.
In both cases, the allotted share capital must be fully paid up in cash.

For further information, please contact Paul Appleby at 858 5820 or Eamonn McHale
at 858 5827.

Office of the Director of Corporate Enforcement
19 February 2007