Yes. It is possible to make an Application pursuant to Section 17 CDDA for leave to act as a company director or in a lesser capacity for example as a manager within the structure of a limited company. Typically these Applications are made concurrently with either the Trial of the matter, (i.e. at the end of the Trial if the defendant is unsuccessful) or if the matter has been compromised by way of Carecraft proceedings at the Carecraft Hearing. The reason for this is that it saves legal costs of both the DTI and the current director.

The Court will not always grant these Applications and the Applications require careful consideration. Therefore the director should ensure that he or she seeks legal advice and also advice from his or her accountant in order to maximise the chances of success of such Application.

Typically, the Application will only be granted if the director can show that major changes have taken place in the method of conducting business of the new company by comparison to the company liquidation which will be the subject of the proceedings. In addition, the new company will of course have to be trading solvent.

Filed under: INSOLVENCY

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