Explanatory note

These Rules make provision for the procedure for bringing applications for compensation orders and applications for the variation and revocation of compensation undertakings. The ability for the Department for the Economy to apply for compensation orders to be made against, and to accept compensation undertakings from, disqualified directors under Article 19A of the Company Directors Disqualification (Northern Ireland) Order 2002 (S.I. 2002 No. 3150 (N.I. 4)) was introduced by section 112 of, and paragraph 8 of Schedule 8 to, the Small Business, Enterprise and Employment Act 2015 (c.26) as from 1 October 2015.

Rule 3 provides that applications for compensation orders and for variations and revocations of compensation undertakings are to be by way of originating summons with any appropriate adaptation and that the Rules of the Court of Judicature (Northern Ireland) 1980 are to apply to such applications except where these Rules otherwise provide.

Rules 4 makes provision about supporting evidence and Rule 5 sets out information to be endorsed on the summons.

Rule 6 makes provision about service of the summons and establishes a procedure for use where processes, court orders or other documents need to be served on someone outside Northern Ireland.

Rule 7 makes provision about statements in reply to summonses.

Rule 8 provides a tailored regime for the filing and service of evidence in these proceedings and Rule 9 for the hearing of applications. In the first instance, these applications must be heard by the Master and may be adjourned, including an order that they be determined by a Judge.

Rule 10 states that a compensation order may be made against a respondent who has not taken part in the proceedings but also gives the court discretion to vary or set aside an order made in the absence of the respondent.

Rule 11 applies provisions in the Rules of the Court of Judicature (Northern Ireland) 1980 to appeals made against orders or decisions of the Master.

Rule 12 revokes the Compensation Orders (Disqualified Directors) Proceedings Rules (Northern Ireland) 2025. That statutory rule contained an error and this replaces it.

A regulatory impact assessment has not been produced for these Rules as no impact on business, charities, social enterprise or voluntary bodies is foreseen. An explanatory memorandum is published alongside these Rules at www.legislation.gov.uk.