Tuesday, 14 January 2014

What can a person do if he/she is not sure if their current job means they are acting in contravention of a director disqualification order?

The Civil Procedure Rules (the court rules governing litigation) allow a person to apply to court for “declaratory relief” (i.e. a ruling from the court) that the activities a person proposes to undertake are not prohibited under the terms of the order.

If this is done, the Court considers the question of “justice” to both the Claimant and Defendant, whether the declaration would serve a useful purpose and whether there are any other special reasons why the declaration should not be made.

The application needs to be served on the Secretary of State (as custodian of the public interest) and it would either comment on or oppose the application. 

In reality, if someone is considering an application for declaratory relief, it is best done in tandem with a formal application for permission to remain / become a director pursuant to section 17 of the Company Director Disqualification Act 1986. 

An application for declaratory relief might for example, be relevant for a disqualified person wanting to be a consultant.