Tuesday, 14 January 2014

What happens if a person simply carries on as before without permission?

If a person acts in breach of a director disqualification order, the penalties can be severe. 

(i) It can lead to imprisonment for up to 2 years and / or a fine [section 13 of the Company Director Disqualification Act 1986].

(ii) That person can be held personally liable for the Company’s debts for the time you acted in breach of the disqualification order [section 15 of the Company Director Disqualification Act 1986].

The Secretary of State does check up on banned directors. They can contact staff, suppliers and other people to determine whether a struck off director is still essentially running a business.