Directors Disqualification

If you are a director of a business faced with a Disqualification Order under the Company Directors Disqualification Act 1986, you will need to defend your right to continue to act as a director of your business and prove that your actions and directorship abilities are untarnished. Often, Disqualification Orders are sought against directors who are considered to have failed to act, or comply with, the specific laws surrounding the appropriate running of a business in line with The Companies Act (2006) requirements, plus other director’s responsibilities and legal requirements.

A Disqualification Order might cover:

• continuing to trade to the detriment of creditors at a time when the company was insolvent
• failure to keep proper accounting records
• failure to prepare and file accounts or make returns to Companies House
• failure to submit tax returns or pay over to the Crown tax or other money due
• failure to co-operate with the OR/IP.

Once a director has been disqualified, he/she can no longer be involved in the management of the company under review, so it is a highly emotive area for directors to receive an Order, and one where you definitely need to find legal representation.