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

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

  • How can a director be disqualified as a company director?
  • Company Directors Disqualification Act 1986 (CDDA 1986)
  • Sections 213–214 of the Insolvency Act 1986
  • Miscellaneous
  • e Filing

There are various ways in which a director can be disqualified from acting as a director of a limited liability company. The most common of these is to be disqualified for 'unfit conduct' as a director of an insolvent company under section 6 of the Company Directors Disqualification Act 1986 (CDDA 1986).

However, there are various other sections contained under the CDDA 1986 and the Insolvency Act 1986 (IA 1986) which allow for the disqualification of a company director, which are less common.

Whatever enactment is used to disqualify a director, what is prohibited to a person once disqualified as a director is generally the same and is set out in more detail in Practice Note: What is prohibited for a disqualified director?

For s 6, proceedings will either be brought in the name of the Secretary of State for Business, Energy & Industrial Strategy (SoS) (for voluntary winding up) or by the Official Receiver (OR) in compulsory winding up cases. Both exercise the same functions, and for ease when we refer to SoS in these notes, we also include the OR.

Company Directors Disqualification Act 1986 (CDDA 1986)

The Company Directors Disqualification Act 1986 (CDDA 1986) provides for a director who has been found guilty of misconduct to be disqualified from acting as a company director for a specified period.

Proceedings