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Effect of Delinquency or a Probation Order
The effect of an order of delinquency is that a person is disqualified from being a director
of a company. The order may be conditional and subsist for seven years or longer, as
determined by the court. Under certain circumstances the order may be unconditional
and subsist for the lifetime of the delinquent director.
A person who has been placed under probation may not serve as a director, except to
the extent permitted by the order of probation. The probation order may be subject to any
conditions the court considers appropriate and generally subsists for up to five years.
A court may order as a condition applicable to the declaration that the person undertake
a designated program of remedial education relevant to the conduct of a director and/or
do community service and/or pay compensation to any person adversely affected by his
conduct as a director/member (to the extent that such a victim does not otherwise have
a legal basis to claim compensation).
Application to Suspend or Set Aside a Delinquency or
Probation Order
Where a director has been declared delinquent for consenting to serve as a director or
for acting in the capacity of a director while ineligible or disqualified, or on account of
contravening a probation order there is no relief, the declaration of delinquency subsists
for his lifetime and it may not be suspended or set aside.
However, in other instances, three years after the order of delinquency is made, the
delinquent director may apply to court to suspend the order, and substitute an order of
probation (with or without conditions).
If the order of delinquency is suspended, the court may, on application, set it aside after
two years of suspension.
A person subject to an order of probation may apply to court to set aside the order at
any time two years after it is made.

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