MARKETSPREADS, THE spread-betting company embroiled in a €1.7 million court case with former executives, faces being struck off the register of companies for failing to file accounts on time.

Struck-off companies lose the protection of limited liability, which risks leaving shareholders, and possibly directors, liable for their debts.

The sanction is normally applied to businesses that fail to file their annual returns and accounts on time.

Marketspreads Ltd was listed for strike-off by the Companies’ Registration Office earlier this week. This means that it risks being struck off within a matter of weeks if it does not make its returns.

The company subsequently confirmed that its strike-off listing was a result of a delay in making its returns for 2010.

The company said the delay was due to issues with finalising historic accounts that date back to before the management buyout of the company in December 2009.

It added it would make the returns within the deadline specified by the Companies’ Registration Office.

Marketspreads’ management bought the company from the publicly quoted Worldspreads, which wanted to sell its Irish business, in December 2009.

Earlier this week, it emerged that Marketspreads is pursuing former chief executive Brian O’Neill and former executive director Fergus Rice through the courts for a total of €1.7 million.

The company told the commercial court that Mr O’Neill, of The Copse, Beresford, Dublin, and Mr Rice, of Pembroke Road, Dublin, diverted €1.4 million from Marketspreads to another company in which they were involved, Sports Spread Betting Ireland.

Both men left Marketspreads in July 2011. Late in 2010 and early in 2011 its board discovered that advances, totalling €1.4 million, had been made to Sports Spread Betting Ireland.

The €1.7 million sum for which both men are now being pursued includes the principal figure and €300,000 interest.

Mr Rice was in court when the matter was raised on Monday. He disputed the interest calculation and also argued he was not liable for the entire amount sought by the company, saying the liability should be split between himself and his former colleague, Mr O’Neill.

Marketspreads offers spread betting on financial markets to its clients.

The Central Bank regulates spread betting companies in the Republic of Ireland and has been informed of the case involving Mr O’Neill and Mr Rice.