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Ask Buachaill Your Own Question
Buachaill, Barrister
Category: Employment Law
Satisfied Customers: 10956
Experience:  Barrister 17 years experience
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I was employed by a UK company but was appointed a director

Customer Question

I was employed by a UK company but was appointed a director of an Irish entity. The UK company has no shareholding in the Irish company. I have entered into a settlement agreement with my employers in the UK but they have not required me to resign from my executive directorship in Ireland. I was not paid anything from the Irish company nor was there a contract for my service there. If I am forced to resign from my directorship do I have any form of claim?
Submitted: 1 year ago.
Category: Employment Law
Expert:  taratill replied 1 year ago.
Hi Wesley is the directorship in Northern Ireland or the Republic, what was the reason you were appointed director there?
Customer: replied 1 year ago.
Republic of Ireland. Appointed as I was responsible for the finance and assistance in running of the company. I visited regularly and made executive decisions
Expert:  taratill replied 1 year ago.
As this specific query relates to the Republic of Ireland rather than the UK company I will opt out for a person who specialises in Republic of Ireland law to assist you.
Expert:  Buachaill replied 1 year ago.
1. Dear *****ley, I regret to say that neither resigning from your Irish directorship nor being forced out will give rise to a claim under Irish law. This is because a directorship is deemed not to be a contract of employment under the relevant Irish Unfair Dismissals law. So, there will be no compensation claim for either resigning or for having to leave. However, I would advise you to resign the directorship because for as long as you are a director, you bear a potential liability for anything which goes on in that company. Under Irish law, this can include liability for reckless trading if there is an insolvency for which the company is taken to have been improperly managed. Accordingly, as you are getting no personal benefit from holding this position, it is foolish to continue as a director where you have a potential liability but at no personal gain.
Expert:  Buachaill replied 1 year ago.
2. Please Rate the answer as unless you Rate the Answer your Expert will receive no payment for answering your question.