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

For information on how a CVA Company Voluntary Arrangement can assist in the rescue of a business please call us TODAY or apply for advice online