Mr Thomas Bailey withdrew money from Bovale Developments Ltd, a company he shared equally with his brother Michael, to develop a flock of pedigree Suffolk sheep which had been a childhood dream, the Flood tribunal was told yesterday.
Mr Desmond O'Neill, for the tribunal, asked Mr Michael Bailey about the company accounts for 1989, 1990 and 1991.
Mr Bailey's sister-in-law, Ms Caroline Bailey, had said in evidence that she and her husband Thomas were the recipients of most of the funds lodged to personal bank accounts throughout that period, amounting to about £342,000.
The payments recorded made to Mr Michael Bailey during the same period totalled £118,000.
Mr O'Neill said it would appear from the documentation that in the three years Mr Thomas Bailey also drew director's loans from the company of £51,500, of which he paid back £4,700 in 1992.
Mr Michael Bailey did not draw any salary from Bovale in 1989 or 1990. He drew £30,232 in 1991. His brother had drawn £17,500 in 1989, £21,000 in 1990 and £27,765 in 1991.
It appeared that over the three years Mr Thomas Bailey drew a total of £432,900 from the company.
Mr O'Neill asked how he settled the account to ensure that the 50/50 shareholding was reflected.
Mr Michael Bailey replied that he believed it would be reflected in later years and that his brother had wanted to develop a Suffolk pedigree flock.
Mr O'Neill asked if Mr Michael Bailey was aware of the accounts indicating his brother funded the farm by way of a £51,000 loan and did not record any cash injection of £300,000 or anything approaching that.
Mr Michael Bailey said he was not aware of that. Mr O'Neill suggested there were other means by which directors took money out of the company, for instance the company was engaged in being paid extras, for instance for extensions, when building houses.