Mohan Sinha
17 Jul 2025, 21:09 GMT+10
DUBLIN, Ireland: Two Irish businessmen, behind a string of major franchises – including Starbucks, TGI Fridays, Mao, and Hard Rock Café – have secured a temporary stay on a court order that restricts them from serving as company directors.
Last month, Justice Nessa Cahill ruled that Colum and Ciaran Butler failed to demonstrate responsible management of Downtul Ltd.
This company operated a Starbucks outlet at St Stephen's Green in Dublin before it went into voluntary liquidation in November 2022. The High Court granted a five-year restriction on their ability to act as directors or company secretaries under the Companies Act 2014.
To continue holding such roles during the restriction period, any company the brothers are involved in would need to meet specific capital requirements: a minimum of 100,000 euros in paid-up share capital for private companies, or 500,000 euros for public companies.
While the court accepted that the brothers had acted honestly, it found they had not shown the level of care and responsibility required to avoid sanctions under the Act.
This week, the Butlers' legal team successfully requested a four-month stay on the order. Their barrister, Brian McGuckian, told the court the delay was needed to allow the brothers time to sort out their extensive business interests. Ciaran Butler is currently listed as a director of 134 companies, and Colum Butler holds directorships in more than 170.
McGuckian also suggested a potential appeal might be filed, though no formal notice or grounds for appeal were submitted at the time. He argued that the stay would give his clients space to consider legal options and ensure compliance across their companies.
Padraic Lyons SC, representing the liquidator Patrick O'Connell, agreed that time should be granted to allow the Butlers to manage their affairs. However, he argued that a six-month delay was excessive. He noted the absence of any formal steps toward an appeal.
Justice Cahill ultimately granted a four-month stay, clarifying that the pause was strictly to give the brothers time to organize their business affairs, not to accommodate a potential appeal. However, she noted that the terms of the stay would be the same if it had been granted for appeal purposes.
The Butlers can still appeal, but they must file a formal application before the court.
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