Thursday, 21 November 2013

Periods of Disqualification

The maximum period which a director can be disqualified by way of undertaking is 15 years. The minimum period under Section 6 is 2 years (there is no minimum period under section 8). 

With regard to Section 6 disqualifications, there are 3 distinct “brackets” of disqualification within this range.

2-5 years - this is known as the “lower bracket” 
6-10 years - this is known as the “middle bracket” 
11-15 years - this is known as the “higher bracket” 

Subject to the “gravity” of the offences giving rise to the allegations of unfitness, an individual will face disqualification in one of those 3 categories. 

If a person who is already subject to an undertaking or formal court imposed Disqualification Order then agrees to a further voluntary undertaking for a second “offence”, the Order shall run concurrently (Section 1A(3) of the Company Director Disqualification Act 1986).