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Insolvency & Bankruptcy Solicitors

Insolvency & Bankruptcy Solicitors

Director Disqualification

A company director can be disqualified, or banned, for up to 15 years if they do not meet their legal obligations.

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.

How we can help

When the conduct of directors comes under scrutiny, Else Solicitors has experience of contesting disqualification proceedings with vigour and painstaking detail.

We have exhaustive knowledge of the relevant periods of disqualification that should be applied to the matters of unfit conduct together with the evidence that will need to be produced to support those allegations and secure a disqualification. This enables us to contest proceedings, or negotiate agreements of appropriate periods of director disqualification.

Even if you are subject to a disqualification order, or agree to an undertaking, you may be able to submit a court application for leave to be a director of a company whilst disqualified. The team at Else Solicitors has considerable experience of dealing with these applications.

To speak to a member of the insolvency and business recovery team team in relation to director disqualification, please call 01283 526200, alternatively you can send us a message and we will get in touch at a time that suits you.

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