What are the Implications of Bankruptcy for Company Directors?

Declaring bankruptcy is a significant decision for anyone. If you’re a company director, however, or plan to be one post-bankruptcy, then there are some additional bankruptcy implications you should consider.

During the one-year period of bankruptcy you are not entitled to be a director of a company in this state. This is important to know for people who are company directors prior to declaring bankruptcy in Ireland so that steps can be taken before bankruptcy to deal with this fact.

Often people will step down as director and appoint a replacement before they declare bankruptcy so that no issue arises.

After the one-year period has elapsed there is no impediment to return to be a director. 

The key thing to bear in mind then, is that you cannot be a director of a company for a period of one year after filing for bankruptcy in Ireland.

 

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