Tax and Insolvency Litigation Solicitor

Director Disqualification

Directors Disqualification

Directors Disqualification

The disqualification of directors is specialist litigation that requires advice from lawyers experienced in dealing with the Insolvency Service on a day to day basis.

The Insolvency Service is the government agency tasked with investigating the conduct of directors of insolvent companies. They have extensive powers and a very particular way of conducting their investigations.

Similar issues can arise in Director Disqualification cases investigated and brought by The Insolvency Service. For a list of Frequently Asked Questions relating to Director Disqualification cases please click here.

The power of The Insolvency Service to seek the disqualification of a person to act as a Company Director is set out in the Directors Disqualification Act 1986.

Generally speaking a person can be disqualified from acting as a Company Director where, either –

  • They have been convicted of a criminal offence,
  • Where there have been persistent breaches of companies legislation or
  • Where the Insolvency Service bring an application to Court following an investigation into an insolvent company

The Insolvency Service will have to show that the conduct of the Director of the insolvent company was such that he/she is unfit to be concerned in the management of a company.

The questionable conduct of a director of an insolvent company will usually be brought to the attention of the The Insolvency Service by either the Official Receiver or the Liquidator of the insolvent company. An investigation will then be commenced to which there are a number of outcomes.

There are a number of distinct stages to Directors Disqualification proceedings once an investigation or proceedings get underway. See below the main areas to consider.

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To further discuss any area of Director Disqualification with an experienced lawyer please contact us or call us on 07460 005 769.

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