Directors Disqualification Advice
We provide advice on the following:
- Appointing new directors
- Summary of company directors' responsibilities
- Directors' powers and financial liabilities
- Responsibilities not relating to Companies House
- Sending documents to Companies House
- Disqualification of directors
What Is Director Disqualification
A disqualification order is made by the court under the Company Directors Disqualification Act 1986. The Act applies not only to a person who has been formally appointed as a director but also to those people who have carried out the functions of a director and to shadow directors.
Without specific permission of the court, it disqualifies a person from:
- Acting as a director of a company
- Taking part, directly or indirectly, in the promotion, formation or management of a company
- Being a liquidator or an administrator of a company
- Being a receiver or manager of a company's property.
An order for disqualification can be made under a number of different sections of the Company Director Disqualification Act 1986 (see also section 4 - Criminal proceedings).
The order will specify the period of disqualification. For orders made against an unfit director of an insolvent company, there is a minimum period of 2 years and a maximum of 15 years.
Potential causes of disqualification include:
- Allowing the company to trade while insolvent
- Not keeping proper accounting records
- Failing to prepare and file accounts
- Not sending returns to companies house
- Failing to send tax returns and pay tax
We provide company director advice to company directors seeking information on insolvency and tax situations that require urgent attention. If you are a company director seeking advice please call us today or apply online
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