THE AMENDMENTS TO THE RESTRICTION OF COMPANY DIRECTORS' REGIME UNDER THE COMPANIES (CORPORATE ENFORCEMENT AUTHORITY) ACT 2021

Section 34 of the Companies (Corporate Enforcement Authority) Act 2021 amended the grounds for bringing a restriction application against a company director. These new grounds for a restriction application are considered in this article and analysed in the context of the previous case law concerning the regime. This article finds the new grounds change the traditional applicant for the restriction regime from liquidators to the Corporate Enforcement Authority. The grounds indicate behaviours that are potentially dishonest and warrant disqualification instead of restriction of company directors. Where irresponsible, these grounds may encounter impecuniosity on the part of directors. The new grounds also indicate that responsible directors voluntarily liquidate the underlying company and are relevant to the new directors' duty to have regard to creditors' interests. Finally, the new grounds move the restriction regime further from a causal assessment of a director's dishonesty or irresponsibility and company insolvency. Keywords: Company law - company directors - restriction of company directors