Companies Act 2014 section 820

Application for declaration of restriction

Section 820 sets out who may apply for a restriction declaration against a director of an insolvent company, and provides that the court may order the restricted person to pay the costs of the application and related investigation expenses.

• An application to restrict a director may be made by the Corporate Enforcement Authority, the liquidator of the insolvent company, or a receiver of the company's property
• The court may order the person subject to the restriction declaration to pay the costs of the application itself
• The court may also order that person to pay all or part of the applicant's costs and expenses incurred in investigating the matters and collecting evidence, including attributable remuneration and expenses
• This provision ensures that the financial burden of pursuing a restriction declaration does not fall solely on the applicant, but can be shifted to the director whose conduct gave rise to the proceedings