Restriction Process
Restriction orders typically last five years and prohibit involvement in company management without meeting capitalisation requirements. Liquidators are central to restriction applications, providing evidence and notifying the ODCE of relevant proceedings. Directors must rebut the presumption of restriction by proving their diligence and honesty. Non-resident and non-executive directors are also subject to restriction, with the latter evaluated based on their role.
Disqualification or restriction can result from improper financial management, trading while insolvent, or prioritising personal interests over creditors. The ODCE may accept restriction undertakings, avoiding court proceedings. Breaches of restrictions or disqualifications are offences, potentially leading to extended penalties. Costs of applications may be borne by directors found culpable, while failed applications may result in the liquidator bearing costs.
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