Director Disqualification

The first stage of defence – responding to either the Insolvency Service or their solicitors writing to you asking for information about your failed company concerning the threat of a Disqualification Claim being made against yourself. This request for information may be sent as a letter or as a formal questionnaire.

It is common to see former Directors complete and return these questionnaires themselves without legal advice, leading to them inadvertently making comments which may well prove detrimental in future legal proceedings down the line.

Our expert team can help you through the entire process, ensuring that any questions raised by the Insolvency Service are responded to proprerly and sensibly, which if suitably responded to, can ward off the threat of disqualification early on.

Should formal director disqualification proceedings be issued against you, our expert team are here to help you.

We can act on your behalf and represent you at court hearings and liaise with the other side, while also providing you with in-depth advice on the evidence against you, preparing de

These had been Introduced under the Insolvency Act in 2001. A disqualification undertaking allows you to consent to disqualify yourself and end any further court proceedings.

The key benefits to pursuing this option would be to avoid substantial legal costs and it also acts as an expedited resolution to the matter, as understandably individuals may wish to put these matters behind them as quickly as possible.

However, it is important to receive proper legal advice before making any decision on whether to agree to a voluntary disqualification undertaking. Our expert team can negotiate a voluntary disqualification undertaking and advise you on the risks, including any damage to your long term career options, consequential claims which could be made by the official receiver for a breach of your duties as a director owes fiduciary duties, and claims under the Compensation Act 2015 where former directors can be made liable to personal claims for losses sustained by creditors during liquidation.

It is possible to remain a director of a company post-disqualification, if you have received permission from the court to continue to act as a director.

If you continue to act as a director without obtaining the necessary permission, you can be found liable to face a fine or even risk imprisonment.

Our expert director disqualification team can assist you in obtaining this permission from the court, by making an application under Section 17 of the Company Director Disqualification Act 1986, enabling you to continue in business, with various safeguards being in place to protect creditors.

Our specialist team can also assist you in seeking to reduce the period of disqualification by successfully negotiating a disqualification undertaking.

Under Section 8A of the Company Directors Disqualification Act of 1986, it is possible for a disqualified director to seek to reduce the period of time for which they are disqualified, if they are able to persuade the court that the period of disqualification is unreasonable and that circumstances exist which enable the Court to re-evaluate the disqualification period.

Our expert team can advise you on this process by reviewing the merits of your claim prior to making any application, preparing any documentation and witness statements supporting your application and dealing with any response to your application.

Under the Company Directors Disqualification Act of 1986, if evidence is provided of fraud, theft or similar acts you could face disqualification as acting as a director in the Criminal Courts.

An important example of this which is common amongst smaller companies is the failure to file your Annual Accounts and Annual Reports. A director can be pursued by the Registrar of Companies for this failure, with penalties ranging from a fine for a first-time offence, to disqualification for a period between one to five years if the offence is repeated.

Our expert team can advise you on any risks and liabilities you may face as a director of a company and assist you to correspond with the Registrar of Companies directly, negotiating withdrawals of proceedings, attending any hearing if necessary and making representations with a view to persuading the Court not to make a Director Disqualification Order against you.

Our expert team specialise in director disqualification proceedings and can also assist you to avoid the risks associated with continuing to act for a company after receiving a Director Disqualification Order, with individuals being particularly vulnerable to these risks should they choose to ignore these orders.

A director may be made liable for all debts incurred by the company if continuing to act while disqualified, with it also being a criminal offence punishable by imprisonment to act as a Director whilst being disqualified. Directors should also be careful not to undertake any activity which would normally be carried out by a director even if they do not name themselves as a director of the company they work for.

Our specialist team can advise you on your position post disqualification, and should you be at threat of breaching your Disqualification Order, we will advise you on the best steps to take to best protect your position.