Butler Brothers Win Stay on Director Restrictions Following Court Ruling

Two brothers, Colum and Ciaran Butler, have secured a stay on a court order that barred them from acting as directors of companies. This decision follows a judgment issued by Ms Justice Nessa Cahill, which determined that the brothers had not sufficiently demonstrated responsible management of their company, Downtul Ltd. This company previously operated a Starbucks franchise at St Stephen’s Green in Dublin.

Downtul Ltd was placed into voluntary liquidation in November 2022, leading to the court’s restriction on the Butler brothers from serving as company directors or secretaries for a period of five years. The ruling specified that they could only resume such roles if any new company had a minimum share capital of €100,000 or €500,000 for a public limited company, as outlined in the Companies Act 2014.

Legal Proceedings and Arguments

The Butler brothers’ legal representation applied for a stay on the court’s order, arguing that they needed time to reorganize their business affairs. Counsel Brian McGuckian highlighted the extensive involvement of the brothers in the corporate sector, noting that Ciaran is a director of 134 companies and Colum oversees over 170 companies.

McGuckian sought a six-month stay, citing the necessity for the Butlers to arrange their affairs properly. He also mentioned that the court typically grants directors time to comply with similar orders. The opposing counsel, Padraic Lyons SC, representing the receiver, contended that while a stay for organization was reasonable, the six-month duration was excessive.

Judge Grants Four-Month Stay

Ms Justice Nessa Cahill ultimately granted a stay of four months for the Butlers to organize their affairs, but did not allow for a stay pending a potential appeal against the High Court ruling. She clarified that the stay would maintain the same conditions as if she had approved a stay pending an appeal.

The judge emphasized that it was up to the Butlers to present any grounds for an appeal if they chose to pursue that route. While the court acknowledged the need for the brothers to manage their business responsibilities, it also highlighted the importance of providing the necessary legal framework for their future operations.

As the Butler brothers move forward, the implications of this legal decision will be closely monitored, particularly given their significant roles in managing various prominent franchises in Ireland.