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ARTICLE · 14 FEBRUARY 2022

High Court Case Brings Into Sharp Focus The Difference Between Disqualification And Restriction Orders

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The liquidator sought orders of disqualification or, in the alternative, orders of restriction, against the company directors pursuant to sections 842 and 819 of the Companies Act 2014 respectively.

IrelandCorporate/Commercial Law
Fergus Doorly
Fergus Doorly
Ruairi Rynn
Ruairi Rynn
Alice O'Connor
Alice O'Connor
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Background

In a recent High Court decision, Quinn J exercised discretion in choosing to impose the lesser sanction of a restriction order as opposed to a disqualification order against the directors of Meridian Motors Limited (company).

The liquidator sought orders of disqualification or, in the alternative, orders of restriction, against the company directors pursuant to sections 842 and 819 of the Companies Act 2014 (CA 2014) respectively.

Ultimately, the directors were restricted by the High Court for a period of five years from involvement with any company (unless such a company meets certain capitalisation requirements as set out in section 819(3) of the CA 2014). 

Restriction Versus Disqualification 

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