What is Director Disqualification?
Director disqualification is a ban from serving as a director at any UK registered company, or any overseas ones with UK connections. This includes the creation, or running of, any business too.
Unfit conduct can result in director disqualification for up to 15 years.
The order also applies to organisations such as trusts, societies and LLPs.
An application for company director disqualification could come from several sources. These include The Insolvency Service, Competition and Markets Authority, Companies House, or the courts.
If you receive a written notification about the start of a disqualification process, there are typically two main options:
- Go to court – here you can try to defend the case, if you dispute the claim
- Give a disqualification undertaking – broadly speaking, you accept the director disqualification claim voluntarily, ending the court action
It’s also possible to give a disqualification undertaking once court proceedings have already started, in order to end the case. But you may still be liable for any costs and expenses incurred so far.
The legislation detailing the standards for assessing unfit conduct, as well as the consequences, is called the Company Directors Disqualification Act 1986.
