Thursday, 5 December 2013

How far can a period of disqualification be reduced?

For disqualification undertakings entered into following the insolvency of a company (under Section 7(2A) of the Company Directors Disqualification Act 1986), it is important to understand that the Court cannot vary a period of disqualification below the statutory minimum – currently 2 years.  

However, as an alternative, if less than two years have passed since the disqualification undertaking was entered into, an individual can apply under Section 8A(1)(b) for it “to cease to be in force”.  

For all other disqualifications (sections 2, 8, 9B) a disqualification undertaking can be reduced to any period (but not nil, as the disqualification undertaking cannot be annulled or rescinded).

This procedure cannot be used to overturn a disqualification undertaking completely. 

This procedure will never enable an individual to rescind or annul a Disqualification Undertaking. It can only reduce the period of the original disqualification