Tuesday, 5 November 2013

FAQ - What type of behaviour can give rise to a director disqualification order being made?



There are a number of different grounds under the Company Director Disqualification Act 1986 which can lead to the making of a director disqualification order:

(i)     If you are convicted of an indictable offence (i.e. a criminal offence) in connection with the running of a company, this can also give rise to a disqualification as well as any criminal conviction [sections 2&5 of the Company DirectorDisqualification Act 1986]. 

(ii)     If a company persistently breaches company’s legislation e.g. failing to file returns or other documents at Companies House. This again can lead to a director disqualification order against a director or manager [section 3 of the Company Director Disqualification Act 1986].

(iii)     If in the course of winding up a company it appears that a person has been guilty of an offence of fraud, this can lead to director disqualification order [section 4 of the Company Director Disqualification Act 1986].

(iv)     Unfit conduct by the directors in the former company is the most common ground leading to a director disqualification order being made [section 6 of the Company Director Disqualification Act 1986].