Costs in directors' disqualification proceedings

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

  • Costs in directors' disqualification proceedings
  • Coronavirus (COVID-19)
  • The general principles
  • Discretion as to costs
  • Costs agreements
  • Costs and the public interest
  • Specific considerations in disqualification cases —duty not to act oppressively
  • Reliance on case law
  • Other disqualification specific considerations
  • The Official Receiver's costs
  • More...

Costs in directors' disqualification proceedings

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.

Coronavirus (COVID-19)

This content contains guidance on subjects impacted by the Coronavirus Act 2020 and related changes to court procedures and processes as a result of the Coronavirus (COVID-19) pandemic, including the Temporary Insolvency Practice Direction 2020. For further information, see Practice Notes: Coronavirus (COVID-19)—Changes to the court process in insolvency proceedings and The Temporary Insolvency Practice Direction Supporting the Insolvency Practice Direction (June 2021). For related news, guidance and other resources to assist practitioners working on restructuring and insolvency matters, see: Coronavirus (COVID-19)—Restructuring & Insolvency—overview.

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

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