Hundreds of company directors are likely to be given dates for restriction hearings when their cases come before the Examiner's Court on Monday. Colm Keena reports.

Ms Justice Findlay Geoghegan has set aside four weeks at the end of October and beginning of November, during which she intends to hear Section 150 hearings that could lead to restrictions being placed on hundreds of people from operating as company directors. A list of 62 companies that have gone into voluntary liquidation and the liquidators of which have made restriction applications to the courts is listed for Monday.

It is likely a significant number of extra cases will be added to the list by then. Ms Justice Findlay Geoghegan is expected to set dates for hearing the cases in the week beginning October 20th, and subsequent weeks.

The cases listed for Monday involve smaller companies that would not be known to the public.

A substantial rise in the number of people who will be restricted from operating as directors is expected, arising from the Company Law Enforcement Act 2001, which created new obligations for the liquidators of companies placed in voluntary liquidation.

The first wave of such cases arising from the legislation are beginning to reach the courts.

Under the Act, liquidators are obliged to file reports to the Office of the Director of Corporate Enforcement (ODCE) and, unless absolved from doing so by the director, Mr Paul Appleby, are obliged to seek the restriction of the directors of the companies in the High Court. The names of persons restricted by the High Court will be published on the ODCE website.

If a person is restricted from operating as a director, it effectively means that he or she is barred from any participation in the affairs of any company for five years unless the company is capitalised to a certain minimum figure. In relation to public limited companies, the paid-up share capital must be 317,500. In relation to other companies, the minimum is 63,500.

The ODCE has said that various forms of possible misconduct are being revealed in the liquidators' reports it has received. The more serious forms of misconduct include: directors using companies for personal purposes; directors dealing more favourably with some creditors than others; directors not keeping proper books of account; and directors diverting company assets to themselves.

Lesser misconduct discovered has concerned areas such as failing to make filings to the Companies Registration Office or failing to deal with tax liabilities, according to the office.

The ODCE will consider initiating prosecutions in instances of more serious misconduct.