An insolvency practitioner, or a member of the public, can report a company director’s conduct as unfit if they have:
- Allowed a company to continue trading when it could not pay its debts.
- Failed to keep proper company accounting records.
- Failed to send accounts and returns to Companies House.
- Failed to pay tax owed by the company.
- Used company assets for personal benefit.
You are automatically disqualified from being a company director if you are declared personally bankrupt.
Directors facing possible disqualification should always seek specialist legal advice because a successful order would have a major impact on many aspects of their life as well as their ability to be involved with or run a company, directly or indirectly. For example, disqualified directors cannot sit on a health care or social care board or on the board of a school, charity or police authority. Breaching the terms of a disqualification order can lead to imprisonment.