Monday, 14 October 2013

Common Mistakes in Director Disqualification Claims - Believing you cannot be a Director / involved in the Management of a Business if Disqualified

A director may have been disqualified sometime in the past and now have a need to act as a director of a limited company.  Alternatively that person may be contemplating offering a disqualification undertaking (or be subject to disqualification proceedings) and seeking a way out whilst remaining as a director of your company.  Alternatively he/she may have taken a new role up and want the Court’s endorsement that he/she is not acting in breach of the disqualification prohibition. 
These problems can be dealt with by seeking leave to act as a director of one or more companies under Section 17 of the Company Directors Disqualification Act 1986, despite having been disqualified.  This can be dealt with to time with the signing of a disqualification undertaking (to ensure continuity) or can be applied for at any time prior to the end of your disqualification.

This is normally commonly available to directors who have been disqualified at the lower end of the disqualification bracket (up to 5 years) but in extenuating circumstances the Court may grant leave for directors who have been disqualified for higher periods.