Thursday, 5 December 2013

What is the court’s general view on applications to reduce a period of disqualification?

Section 8A is not a well-trodden path in terms of legal applications. The main case on the subject is called Re: INS Realisations Limited v Jonkler and Spencer-Jonkler. 

In that case, the Court made it clear that variation of a Disqualification Undertaking would only be permitted in “special circumstances”.  The Court was very clear that on the whole, it is reluctant to go behind the Disqualification Undertaking and was mindful not to be seen to be leaving the door open to disqualified directors to essentially circumvent the effect of a voluntary undertaking by then later applying to reduce the period it was given for. It needs to be remembered that the Courts are there to ensure that the public interest is protected pursuant to the disqualification regime and they do take this role seriously.  

However, the legislation exists for a reason and subject to a satisfactory explanation of the grounds for seeking such a reduction, there is no reason why this should not be available to an individual.