TWO DIRECTORS at the collapsed Presbyterian Mutual Society yesterday failed in their High Court bid to delay an investigation by their professional disciplinary body.

Philip Black and David Clements were seeking to postpone being interviewed as part of attempts to establish if there was any potential misconduct in how the stricken society was run.

Neither man wanted to participate in the inquiry by the Accountancy and Actuarial Discipline Board (AADB) while there remained a prospect of separate proceedings.

The court heard an administrator’s report prepared for the North’s Department of Enterprise, Trade and Investment may lead to a directors’ disqualification process.

Lawyers for the two accountants said they could also become involved in any regulatory action taken by the Financial Services Authority. A further class litigation is being considered by some of those who deposited in the society.

Up to 10,000 Presbyterians across Northern Ireland lost access to their savings when it went into administration a year ago following a run on its funds.

Mr Black and Mr Clements, directors with the society since 1998 and 1990 respectively, sought leave to judicially review a refusal by the AADB to stay its inquiry. In addition, they wanted a two-week adjournment to try to establish the outcome of the administrator’s report.

The accountants claimed it was unfair to proceed with the potential for further proceedings being launched against them.

However lawyers for the AADB opposed the application. They stressed the pair were members of their professional regulatory body and subject to its rules. It was also contended that the only proceedings currently under way were those initiated by the disciplinary body.

Refusing to grant leave to seek a judicial review, Mr Justice Ronald Weatherup said he was not satisfied there was an arguable case of a serious prejudice which may lead to an injustice.

“All of the proceedings that it is felt may arise here are, at the moment, a possibility,” he said.

The judge, who stressed that the investigation was not yet disciplinary proceedings, also rejected the bid for an adjournment.

He pointed out that a decision to seek directors’ disqualification may be taken regardless of the administrator’s report.