Court Restricts Directors of Insolvent Irish Company

The High Court in Ireland has granted a restriction order against the directors of an insolvent company, Winning Ways Ltd, Pinsent Masons reported. The order was requested by the liquidator of the business at the request of the Office of the Director of Corporate Enforcement (ODCE). 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 section 819 of the Companies Act 2014. When assessing the claim, the court will take into account the preferential payments to the directors that occurred prior to the liquidation. The company was a wholesale trader of pet products and started to experience trading losses in 2013. In December 2014, the company lost a contract with a key supplier, which reduced its turnover by half. Read more