Disqualification under section 6 of the Company Directors Disqualification Act 1986—Part 1: the process and procedure
Disqualification under section 6 of the Company Directors Disqualification Act 1986—Part 1: the process and procedure

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

  • Disqualification under section 6 of the Company Directors Disqualification Act 1986—Part 1: the process and procedure
  • Time limit for bringing a claim
  • The claim
  • Service out of the jurisdiction
  • Hearings, directions and orders
  • Uncontested claim
  • Contested claims
  • Directions

The legislation surrounding applications under section 6 of the Company Directors Disqualification Act 1986 (CDDA 1986) can be found under:CDDA 1986, s 6

  1. the Insolvent Companies (Disqualification of Unfit Directors) Proceedings Regulations 1987, SI 1987/2023 (Disqualification Rules 1987)Disqualification Rules 1987, SI 1987/2023

    and the Practice Direction: Directors Disqualification Proceedings, which was updated in December 2014. For more information see News Analysis: New practice direction on directors' disqualificationPractice Direction: Directors Disqualification Proceedings [2014] Lexis Citation 252

The Civil Procedure Rules (CPR) also apply, except to the extent that they are inconsistent with the Disqualification Rules, when the Disqualification Rules will take precedence. The claim is commenced under Part 8 of the CPR.Disqualification Rules 1987, SI 1999/1023, Sch, para 3

For information on when proceedings under CDDA 1986, s 6 can be brought, and by whom, see Practice Notes:

  1. How can a director be disqualified as a company director?

  2. What constitutes unfitness under section 6 of the Company Directors Disqualification Act 1986?

  3. Directors disqualification—pre-action protocol and considerations

Time limit for bringing a claim

Under section 108 of the Small Business, Enterprise and Employment Act 2015 (SBEEA 2015), CDDA 1986, s 7 is amended to increase the period the Secretary of State (SoS) may bring disqualification proceedings from two to three years from the date that the company became insolvent.

This gives the SoS more time to investigate possible wrongdoing and may lead to less claims of unfairness and breach of duty, and the sorts of issues that arose from cases such as Re Finelist; Secretary of State for Trade and Industry v Swan.Re Finelist; Secretary of State for Trade and Industry