High Court Proceedings
Monday, 8th of March 2010
The High Court decided not to disqualify a company director in respect of a company that had liabilities at the time of it being involuntarily struck off the Register of Companies. The Director of Corporate Enforcement had sought the disqualification. As an Order was not made in this instance, the respondent and case details are not being published
High Court, Dublin.
Justice Mary Finlay Geoghegan
Under Section 160(2)(h) of the Companies Act 1990 (as amended by section 42(b) of the Company Law Enforcement Act 2001), the Director may seek the disqualification of the directors of a company, which has been involuntarily struck off the Register of Companies pursuant to Section 12 of the Companies (Amendment) Act 1982.
Under Section 160(3A), directors may successfully defend such an application for disqualification by demonstrating to the High Court that the company had no liabilities at the time of involuntary strike-off or that any such liabilities were discharged before the date of the making of the disqualification application. Where it deems that a sanction is appropriate, the Court has discretion to either disqualify the director for such period as it deems fit or restrict him or her for a five year period.
On the 8th March 2010, the Director of Corporate Enforcement sought the disqualification of a company director in respect of a company that had liabilities at the time of it being involuntarily struck off the Register of Companies. The High Court determined that the requested Order should not be made. The Court concluded that the passage of time since the dissolution of the Company and the person’s subsequent tax compliance in respect of a second company indicated that the protection of the future creditors did not warrant the disqualification of the person. The Court made no Order as to costs.