Saturday, November 28, 2009

Interesting case on disqualification of directors

The Irish Times reported today that legal submissions have entered the home stretch in the case against former National Irish Bank CEO Jim Lacey. The application for disqualification was brought by the Director of Corporate Enforcement following an investigation establishing that NIB was involved in serious tax evasion and other illegal activity.

Disqualification orders have to be a strong component of the broader corporate governance architecture and a swift process is essential to prevent bad actors from harming more people. The article states that "Since leaving NIB, Mr Lacey said he had been heavily involved in various management and advisory positions in the State and private sector, nationally and internationally, and had discharged his duties in all cases “without even a hint of criticism”." It beggars belief that Mr. Lacey was hired by other employers (including the state) despite the adverse investigation report.