Doherty -v- Donohoe & Ors [2014] IEHC 187 (01 April 2014)

Doherty -v- Donohoe & Ors [2014] IEHC 187 (01 April 2014)

Directors of a small company, unskilled in law, tax, or accounting, who in good faith seek and follow professional advice regarding a technical transaction, and act honestly and responsibly, should not be subject to a restriction order under section 150, absent other blameworthy circumstances.

Citation
[2014] IEHC 187
Parties
Applicant: Peter Doherty; Respondent: Karl Donohoe; Respondent: Ruth Donohoe; Respondent: Edith Donohoe
Jurisdiction
Ireland
Judgment Date
01 April 2014
Procedural Posture
Section 150 Companies Act 1990 Application (restriction Order) / Judgment on Application
Outcome
Restriction order refused; application dismissed.
Legal Topics
Director Restriction, Reliance on Professional Advice, Fiduciary Duties, Corporate Reorganisation
Company Law Corporate Insolvency Director Restriction Reliance on Professional Advice Fiduciary Duties Corporate Reorganisation

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Parties

Peter Doherty

Applicant

Karl Donohoe

Respondent

Ruth Donohoe

Respondent

Edith Donohoe

Respondent

Procedural Posture

Section 150 Companies Act 1990 Application (restriction Order) / Judgment on Application

Legal Issues

  1. 1 Whether directors acted responsibly in relation to the affairs of Gerdando Limited, particularly regarding the 2008 reorganisation
  2. 2 Extent of liability of directors relying on professional advice for technical compliance with Companies Acts

Ratio Decidendi

Directors of a small company, unskilled in law, tax, or accounting, who in good faith seek and follow professional advice regarding a technical transaction, and act honestly and responsibly, should not be subject to a restriction order under section 150, absent other blameworthy circumstances.

Court Disposition

Restriction order refused; application dismissed.

Orders

  • No order under section 150 of the Companies Act 1990 is made against Karl Donohoe, Ruth Donohoe, or Edith Donohoe.