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.

Filed under: INSOLVENCY

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