IRELAND: HIGH COURT WILL GRANT A RESTRICTION ORDER AGAINST DIRECTORS THAT FAIL TO SHOW THAT THEY ACTED HONESTLY AND RESPONSIBLY BEFORE OR AFTER THE INSOLVENCY OF THEIR COMPANY

An article from Out-Law on 15 June reported that the High Court has granted a restriction order against the directors of an insolvent company, requested by the liquidator of the business at the request of the Office of the Director of Corporate Enforcement.  It is said that the judgment confirms that the onus is on directors to prove that they acted honestly and responsibly when raising a defence against a restriction order under the Companies Act 2014 and, when assessing the claim, the court will take into account the preferential payments to the directors that occurred prior to the liquidation.

https://www.pinsentmasons.com/out-law/legal-updates/court-restricts-directors-of-insolvent-irish-company

 

 

 

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Author: raytodd2017

Chartered Legal Executive and former senior manager with Isle of Man Customs and Excise, where I was (amongst other things) Sanctions Officer (for UN/EU sanctions), Export Licensing Officer and Manager of the Legal-Library & Collectorate Support Section

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