WHAT IS THE PROCEDURE FOR DISQUALIFICATION?
The most common scenario for being
disqualified as a company director is when
a limited company goes into insolvent liquidation.
A liquidator who will also be an IP will be
appointed. That liquidator will have a duty
to submit a “D Report” to the Department
of Trade and Industry (“DTI”). The
D Report will recommend or otherwise the disqualification
of two categories of persons:-
a)
Any individual who was a director of that
company; and/or b) Any individual who was
not registered with Company’s House
as a Company Director but who nevertheless
acted as though they were a director of
that company.
Upon
considering the contents of the D Report,
the DTI then have the power if they see
fit to do so, to commence proceedings against
the individuals set out at a) and b) above
with a view to asking the Courts to disqualify
them for a maximum of 15 years.
It
is important to note that if a Disqualification
Order is made, it is extremely likely that
a substantial Costs Order will be made in
favour of the DTI against those individuals
who have been disqualified.
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