Monday, 14 October 2013

Common Mistakes in Director Disqualification Claims - Acting in the Management of a Company

Quite often, upon being disqualified as a director, an individual will take up another role within either an associated company or another company at a senior level on a salary as an employee with the view that s/he is not acting in breach of the disqualification order/undertaking.  However, this is not the case and this area of management is a very grey area where such individuals have been found guilty of acting in the capacity of a director, despite not being registered (a “de facto director”).  With this brings criminal and committal proceedings and the potential liability for the debts of the relevant company as described above.

This is not a risk worth taking and the individual should at least seek professional advice before commencing any such senior role where there is potentially a misconception that he/she is acting in the same capacity as a director.