# The Company Directors Disqualification (Northern Ireland) Order 2002, Article 19A: Compensation orders and undertakings


(1) The High Court may make a compensation order against a person on the application of the Department if the Court is satisfied that the conditions mentioned in paragraph (3) are met.
(2) If it appears to the Department that the conditions mentioned in paragraph (3) are met in respect of a person who has offered to give the Department a compensation undertaking, the Department may accept the undertaking instead of applying, or proceeding with an application, for a compensation order.
(3) The conditions are that—
(a) the person is subject to a disqualification order or disqualification undertaking under this Order, and
(b) conduct for which the person is subject to the order or undertaking has caused loss to one or more creditors of an insolvent company , or a company which has been dissolved without becoming insolvent, of which the person has at any time been a director.
(4) An “insolvent company” is a company that is or has been insolvent and a company becomes insolvent if—
(a) the company goes into liquidation at a time when its assets are insufficient for the payment of its debts and other liabilities and the expenses of the winding up,
(b) the company enters administration, or
(c) an administrative receiver of the company is appointed.
(5) The Department may apply for a compensation order at any time before the end of the period of two years beginning with the date on which the disqualification order referred to in paragraph (3)(a) was made, or the disqualification undertaking referred to in that paragraph was accepted.
(6) In the case of a person subject to a disqualification order under Article 11A or 11D, or a disqualification undertaking under Article 11C or 11E, the reference in paragraph (3)(b) to conduct is a reference to the conduct of the main transgressor in relation to which the person has exercised the requisite amount of influence.

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Source: https://www.legislation.gov.uk/nisi/2002/3150/article/19A (the official version)
Page: https://openlegislation.uk/company-directors-disqualification-northern-ireland-order-2002/article-19A
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.