Applications for leave to act as a director under section 17 of the Company Directors Disqualification Act 1986—principles behind leave being granted
Applications for leave to act as a director under section 17 of the Company Directors Disqualification Act 1986—principles behind leave being granted

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—principles behind leave being granted
  • Leave under s 17—general

This practice note discusses the ability for a disqualified director to apply for permission to act as a director despite disqualification, using s 17 of the Company Directors Disqualification Act 1986 (CDDA 1986). It looks at some general background to the law in this area, and then specifically what factors may be taken into account by the court when deciding whether to allow leave or not. For details on the procedure to apply for leave, see Practice Note: Applications for leave to act as a director under section 17 of the Company Directors Disqualification Act 1986—jurisdiction, parties and the application procedure. For details on the conditions that the court might impose in allowing leave, see Practice Note: Applications for leave to act as a director under section 17 of the Company Directors Disqualification Act 1986—possible conditions attached to leave.

A director can be disqualified under a number of different statutory provisions. For the purposes of these notes on permission, we look at disqualification under CDDA 1986, ss 6, 8, 10, 11 and 12, which includes disqualification by way of a Bankruptcy Restriction Order (BRO) or Bankruptcy Restriction Undertaking (BRU) under the Insolvency Act 1986 (IA 1986). There are some minor differences in the procedure for an application following orders under IA 1986, ss 11 and 12 which we detail in these notes.

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