Q&As

Is there anything to stop a discharged bankrupt from becoming a director if there is a civil finding of fraud/dishonesty against them?

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Published on: 20 March 2023
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An undischarged bankrupt is prohibited from being a director of a company—see section 11 of the Company Directors Disqualification Act 1986 (CDDA 1986).

A discharged bankrupt is not so prohibited unless they are subject to a bankruptcy restrictions order (BRO) or bankruptcy restrictions undertaking (BRU) under Schedule 4A to the Insolvency Act 1986, in which case they are restricted from being a director for the duration of the BRO or BRU (see: Bankruptcy restrictions orders and undertakings—overview).

The simple fact that the discharged bankrupt has been

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United Kingdom
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