Costs in directors' disqualification proceedings
Costs in directors' disqualification proceedings

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

  • Costs in directors' disqualification proceedings
  • The general principles
  • Costs following an undertaking provided to the SoS
  • Costs and the public interest
  • Other disqualification specific considerations
  • Specific applications other than s 6

Despite their penal nature, disqualification proceedings are civil proceedings, and the general principles relating to costs that apply to other civil proceedings also apply to disqualification proceedings.

The Court of Appeal decision in Re Pamstock makes it clear that no special costs rules apply in disqualification proceedings simply by reason of their quasi-penal nature.

The general principles

Discretion as to costs

The general rule for costs under CPR 44.2 that the costs of any civil proceedings are at the discretion of the court also applies to disqualification proceedings.

In matters that go to trial, if the case lasts less than one day, then it is usual for the costs to be summarily assessed following the hearing (and a schedule of costs should be prepared in advance for this purpose in line with the CPR). If the trial lasts more than one day, a detailed assessment is the usual order.

CPR 44.2 sets out the principle that 'costs follow the event'. However, this is just the starting point for any costs award, and any judge deciding on costs must also consider the various CPR 44.2 criteria in deciding whether to disapply – in whole or in part – this principle, based on the circumstances of the case before him. The principles to consider are set out in the case of Multiplex Constructions (UK) Ltd

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