Restrictions on ex-director eased

The High Court has eased the restrictions placed on a former company director despite the objection of the Office of the Director of Corporate Enforcement (ODCE).

Aidan Higgins, a former director of Xnet Information Systems Ltd, was the subject of a restriction order under the Companies Acts 1990, in May 2004.

Among the restrictions was the stipulation that he could not be a director of a company that did not have paid-up share capital of less than €63,487, as prescribed in section 150(3) of the Act.

However, following an appeal by Mr Higgins, Mr Justice Iarfhlaith O'Neill has ruled that a reduced minimum share capital of €7,500 should apply.

While courts have little discretion when a section 150 case is being taken, they have wide discretion in the case of an appeal.

Mr Higgins argued that the larger minimum share capital was beyond his capacity and was preventing him developing ideas which he had and which he believed had potential.

Liquidator James Stafford did not oppose Mr Higgins but the ODCE, as a notice party, did.

It argued that the minimum capitalisation amount was a valuable protection for creditors. It said that if a new minimum capitalisation was to apply, it should be €40,000.

It also said that if relief was granted to Mr Higgins, conditions should be attached. It said Mr Higgins should be obliged to notify the ODCE of his appointment as a director of a company, as well as various other conditions.

Mr Justice O'Neill said that while the circumstances that led to Mr Higgins being restricted in the first place were serious, they were "clearly not at the worst end of the scale of turpitude".