Director Disqualification

Our team of solicitors are well acquainted with the director disqualification process and will offer expert assistance, dispute resolution aid, and legal advice in the building of a case for your defence.

Typical cases we represent include directors who have been accused of embezzlement, non-payment of corporation tax, failure to provide Companies House with correct accounts or returns, continuing to trade despite the unmanageable debt of the company, failure to maintain proper accounts and other offences while a director is involved in the management of a company.

Company Directors Disqualification Act 1986

Under the Company Directors Disqualification Act 1986, a company director can be disqualified – or banned from taking up the same position in any company – if it is found that they have demonstrated unfit conduct.

If you are concerned that you are facing director disqualification proceedings, you must contact director disqualification solicitors as soon as possible to defend yourself.

Matters Informing The Disqualification Of Directors

Director disqualification proceedings may be brought if the director of a company is found guilty of any of the following offences, or others:

• Fraudulent Trading
• Trading whilst insolvent
• Failure to prevent the facilitation of tax evasion
• Financial Fraud
• PAYE and Payroll Fraud
• Non-compliance with UK tax law

Expert director disqualification solicitors may be able to assist if your company is facing any allegations of this kind that you are worried may lead to a disqualification undertaking

Frequently Asked Questions

How long can a director be disqualified for?

The period of disqualification is anywhere between 2 years and 15 years.

Director Disqualification has three different bands:

• Lower band: 2-5 years. These cases usually relate to reckless or negligent conduct.
• Middle band: 6-10 years. These cases are classed as serious and relate to activity which is directly prejudicial to the public.
• Highest band: 11-15 years. These cases are the most serious and usually relate to fraudulent or otherwise criminal activity.

The band of disqualification a director might end up in depends mostly on the gravity of the situation. Generally, any allegations involving dishonesty in any form will draw the longest periods of director disqualification.

Are directors personally liable for company debts?

Company debts may not be rectified through the use of a director’s finances, and you may not face director disqualification proceedings if your company has fallen into debt.

However, deciding to continue to trade while your company is unable to get out of debt may lead to the disqualification of directors, and so if you are accused of doing so, the best approach is to contact our specialist solicitors, who are experts in this area of the law, at your earliest convenience.

Can a disqualified director be a sole trader?

The Company Directors Disqualification Act does not prohibit disqualified directors from working as a sole trader or an employee.

They may also hold shares in private limited companies and within a joint partnership, but not as part of a limited liability partnership.

What is unfit conduct?

Unfit conduct covers any behaviour that is likely to prompt the initiation of the director disqualification process.

This may include: allowing a company to continue trading when it can’t pay its debts, not keeping proper company accounting records, not sending accounts and returns to Companies House, not paying tax owed by the company and using company money or assets for personal benefit as well as other actions that may be deemed unprofessional or unsuitable for the person acting as a company director to undertake.

Being accused of any of the above may lead to disqualification, so speaking with director disqualification solicitors may be vital under these circumstances.

How Can DBT & Partners Help?

DBT & Partners are specialists in business law and insolvency services and in particular the defence of individuals accused of fraudulent behaviour, tax non-compliance and other offences that may lead to director disqualification.

If you have been accused of any reckless or fraudulent activity while acting as a director, contact our director disqualification solicitors for advice, guidance and legal representation.