Twelve years.

That was the period for which Bernard Morrin, former director of Intensive Community Programmes Limited, was disqualified by the High Court earlier this year — one of the lengthiest bans imposed on an Irish company director in recent times.

The case began, on the surface, like many others: a service provider entering liquidation with large debts. But beneath the numbers was a different story. 

Intensive Community Programmes had been entrusted with delivering care services to vulnerable teenagers and young adults, under contracts with Tusla and the HSE. Yet when the company went into liquidation in 2019 with a deficit of over €620,000, the liquidator uncovered evidence that State money had been siphoned off for personal use.

According to the Corporate Enforcement Authority (CEA), a former manager had diverted petty cash for personal purposes — a fact first flagged by Morrin himself, who cited a figure of €215,000 in the winding-up application. However, the liquidator’s investigation revealed the real amount was closer to €354,000. 

Worse still, over four years, there had been unexplained withdrawals and payments of around €500,000 to Morrin and his family, with no PAYE or PRSI declared. Tax liabilities of €524,000 were left unpaid. The liquidator also identified major failures in the company’s internal controls, employment practices, and financial record-keeping.

Morrin offered to submit to a voluntary five-year disqualification. But the CEA rejected the proposal, citing the misuse of public funds intended for vital care services. The case was brought before the High Court, which imposed a 12-year disqualification, underscoring the seriousness of the misconduct.

This wasn’t an outlier.

In March 2022, a creditors’ meeting was held for Boxer Logistics — a freight and delivery company that had ceased trading after just over four years and which Thomas has covered extensively. In the week before that meeting, five motor vehicles worth over €350,000 — all company assets — were sold off. None of this was properly accounted for in the company’s financial statements.

What followed was a forensic dismantling of the company’s affairs by the liquidators. They found that directors Stewart Alexander and Bill Henry had used two personal bank accounts to misappropriate company income and avoid tax obligations. These same accounts were used to fraudulently claim over €1.9 million in Covid-19 wage supports, despite the business being ineligible. The company’s total undeclared Revenue liabilities were estimated at €6 million.

The High Court subsequently imposed a 14-year disqualification on both directors, alongside a €12.4 million judgment against them.

These cases are striking not only for their egregious facts, but they also show the lengths that some directors will go to to benefit personally. 

The CEA has come in for some meaty criticism in recent weeks, with the businessman Denis O’Brien saying the country’s top corporate watchdog’s position should be “called into question”  as a result of its expensive and lengthy investigation into INM. 

I have long argued that the report by the High Court inspectors painted a picture of boardroom dysfunctionality and raised profound questions about the stewardship of the media group during the period under inspection.

But comments by such an influential figure in Irish public life have focused attention back on the CEA  chief executive, Ian Drennan. 

However, when you delve through the most recent annual report of the organisation, you get a sense of the wide range of roles and responsibilities that it covers, particularly in the area of misconduct by directors and in investigating company liquidations.  

The CEA’s 2024 annual report shows a marked rise in liquidator activity and enforcement activity.

The number of reports submitted by liquidators jumped by 23 per cent, approaching 1,000 — the highest level since 2016.

According to the CEA, this surge is due to the post-pandemic “normalisation” of insolvency rates, combined with macroeconomic pressures such as inflation and the unwinding of government supports. The most impacted sectors were hospitality and retail — industries particularly vulnerable to external price and economic shocks.

But the deeper story lies in the behaviour behind the numbers. Many of these failures weren’t just bad luck or poor trading conditions. 

The CEA points to recurring patterns: missing books, unpaid taxes, fake subsidy claims, and asset-stripping in the final days of a company’s life. In these cases, the focus has moved beyond the business — to the individuals who controlled it.

All told, 98 directors were restricted in 2024, up 44 per cent from the previous year. Some 20 directors were disqualified, a 43 per cent increase.

Restrictions are akin to a yellow card – if certain criteria are met, such as an adequate amount of share capital, the director can continue to run the business. Disqualification, however, is like being sent off. 

Company sanctions work in reverse. The directors of every insolvent company are presumed by law not to have acted honestly and responsibly in the management of the company’s affairs. Liquidators must seek the restriction of all directors of the company in the 12 months prior to the date the company entered liquidation, unless the directors provide evidence that their conduct was in fact honest and responsible. Essentially, the liquidator has to tell the CEA not to seek a sanction. 

“Restrictions on foot of CEA’s review of liquidator’s reports, director misconduct which merits the sanction of disqualification is significantly more serious than that which results in restriction and is, therefore, relatively rare in the context of the overall numbers of insolvent liquidations. Nevertheless, there was a substantial increase in the number of directors of insolvent companies who were disqualified during 2024,” according to the CEA.

Ultimately, the CEA’s recent activity highlights the dual purpose of enforcement: not just to punish wrongdoing but to protect the integrity of Ireland’s corporate environment, safeguard creditors and employees, and maintain public confidence in how companies are run.

As insolvency rates climb and the fallout from the pandemic era continues to unwind, the CEA’s growing appetite for enforcement suggests that more directors will be called to account in the months and years ahead. 

Elsewhere last week…

As Coolmore tycoon John Magnier battles construction magnate Maurice Regan over the 751-acre Barne Estate, land registry records and planning files draw the first map of almost 11,000ac amassed in the Golden Vale by the family behind Coolmore. Niall had the inside story.

From its base in Dublin’s Inchicore, Lynskey Engineering has grown into a key player across Europe. Following its sale to the Dussmann Group, CEO Sean McElligott talked to Tom about the company’s history, how the deal came about, and its future.

SumUp and Square have amassed significant market share in Ireland but their Irish businesses are rapidly evolving beyond just accepting payments, according to their CEOs.

Serial food entrepreneur Tom Gannon has just invested in a new bar business called RYSE. Founded by marketing expert Ian O’Rourke and Pitt Bros co-founder David Stone it is targeting active 25 to 44-year-olds.