Landmark ruling: Restriction orders cannot be imposed on credit union directors

Mr Justice Robert Haughton yesterday struck out an application to restrict the 11 directors of Newbridge Credit Union, finding that the court had no jurisdiction to impose the sanctions.

The credit union went into liquidation in 2013 and its liquidator, Jim Luby of McStayLuby, applied for the restrictions to be imposed after the Office of the Director of Corporate Enforcement declined to relieve him of his obligation to seek restriction orders.

However, Mr Justice Haughton accepted legal argument that credit unions are very different from private companies registered under the Companies Act and have their own regulatory framework.

Newbridge-based Burns Nowlan Solicitors, acting for the directors, said it was a “landmark High Court ruling”.