Thursday, 21 November 2013

What happens if the Secretary of State is unreasonable when negotiating the period of my Undertaking?

It has been known for the Secretary of State to take an unreasonable view on the length of any proposed disqualification by way of Undertaking. In those circumstances, it is open to a Defendant to make an offer in an open letter setting what he/she believes to be a reasonable period and then ultimately leave it to the Court to determine the issues and whether the Secretary of State is being unreasonable. 

However, there is a significant degree of risk in taking this course of action as ultimately, should the individual be unsuccessful then he/she will be liable to pay the legal costs of the Secretary of State. 

It is an unfortunate truism that the Secretary of State often has “deeper pockets” than most individuals and as such, can put pressure on people to accept lengthier periods of disqualification than they may otherwise have done had they had the means to fight the case. 

However, it is always possible to seek leave to remain being a director despite disqualification and we would refer you to other tips booklets on our site dealing with this.