Directors' disqualification orders in the criminal courts
Directors' disqualification orders in the criminal courts

The following Corporate Crime practice note provides comprehensive and up to date legal information covering:

  • Directors' disqualification orders in the criminal courts
  • Disqualification and undertakings
  • Disqualification for fraud
  • Disqualification following conviction for failing to file company documents
  • Disqualification following investigation
  • Competition disqualification orders
  • Breach of a director disqualification order—sentencing

A disqualification order is made to protect the public from those who, for reasons of dishonesty, naivety or incompetence, abuse their role and status as a director. Where a defendant has been convicted of an indictable offence, tried either on indictment or summarily, in connection with the promotion, formation, management or liquidation or striking off of a company, the sentencing court may make an order disqualifying the defendant from being a director under the Company Directors Disqualification Act 1986 (CDDA 1986). This means the defendant must not, without leave of the court, be:

  1. a director of a company

  2. a liquidator or administrator of a company

  3. a receiver or manager of a company's property, and

  4. in any way, directly or indirectly, concerned or take part in the promotion, formation or management of a company

A disqualification order must be for a specified term starting from the end of the period of 21 days' beginning with the date of the order. It is general in effect and the court has no power to limit or specify the type of company the defendant must not be involved in the control of.

The conviction must be in connection with the promotion, management or liquidation of a company. The correct test to be applied in determining whether an indictable offence was an offence in connection with the management of a company

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