Applications for leave to act as a director under section 17 of the Company Directors Disqualification Act 1986—possible conditions attached to leave
Applications for leave to act as a director under section 17 of the Company Directors Disqualification Act 1986—possible conditions attached to leave

The following Restructuring & Insolvency guidance note provides comprehensive and up to date legal information covering:

  • Applications for leave to act as a director under section 17 of the Company Directors Disqualification Act 1986—possible conditions attached to leave
  • Applications for leave to act as a director, and the possible conditions attached to leave
  • Example conditions attaching to an order for permission to act as a director under CDDA 1986, s 17

Applications for leave to act as a director, and the possible conditions attached to leave

Once a director is disqualified under CDDA 1986, he may apply to the court for permission to act as a director of a specific company or companies.

Whether leave is granted is entirely within the discretion of the court. The court will look to the Secretary of State (SoS) for guidance, but ultimately the decision rests with the court.

Of paramount consideration when agreeing to grant leave, is the need to protect the public to prevent misconduct from occurring in the future. The court must consider the risk to the public, and balance this against the need for the director to remain as a director of a particular company or companies. For a full discussion on what factors the court will consider when applying its discretion, see Practice Note: Applications for leave to act as a director, under section 17 of the Company Directors Disqualification Act 1986—principles behind leave being granted.

In order to protect the public, if it decides to grant permission, the court will often impose conditions designed to avoid any misconduct occurring in the companies over which the director has been granted leave.

Any breach of these conditions will amount to a breach of the disqualification order, as the director will then be considered