The Director of Corporate Enforcement has said he will not take any action against individuals involved in the affairs of DCC between February 1995 and April 2000 until High Court inspectors have investigated.
Paul Appleby said he had asked the High Court to appoint inspectors to investigate DCC and two associated companies because no court order was made to disqualify any individuals, despite a Supreme Court finding of insider dealing in the sale of DCC's stake in Fyffes in 2000.
Last night, DCC executive chairman of Jim Flavin resigned after coming under increasing pressure due to the fall-out from the Fyffes case.
Mr Appleby said current rules of evidence prevented his office from using the evidence considered in the original court proceedings.
He said that, if sanctioned, a High Court-ordered inspection of the companies would satisfactorily address all of the matters of concern to his office.
Mr Appleby wants the inspectors to focus in particular on the transfer of DCC's shares in Fyffes to two subsidiaries in 1995, and the period surrounding the subsequent sale of the shares in early 2000. The two subsidiary companies are S&L Investments Limited and Lotus Green Limited.
The director said he would not be making any further comment as the matter was now sub judice.
Meanwhile, the ODCE's annual report shows that the number of insolvent firms going into liquidation rose at the end of 2007. Mr Appleby said this had continued into 2008, with 40 in April, compared with 30 a month last year.
There were 14 directors disqualified as a result of ODCE action last year. One was for 12
years, the longest period to date. There were also 28 convictions of companies, directors and others for breaches of company law obligations.
DCC shares closed down 37 cent at €14.99 in Dublin.
