Post order and undertaking: commencement of disqualification, publicity, and sanctions for breach of disqualification
Post order and undertaking: commencement of disqualification, publicity, and sanctions for breach of disqualification

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

  • Post order and undertaking: commencement of disqualification, publicity, and sanctions for breach of disqualification
  • Commencement of disqualification order and undertaking
  • Registration of disqualification and adverse publicity
  • Sanctions for breach
  • For further information, see:

Commencement of disqualification order and undertaking

Section 1(1) of the Company Directors Disqualification Act 1986 (CDDA 1986) provides that a disqualification order must be for a period specified in the order, and that 'unless the court otherwise orders, the period of disqualification...imposed...[under a disqualification order] shall begin at the end of the period of 21 days beginning with the date of the order.' This provision allowing 21 days' grace has been in place since April 2001 as a result of changes brought in by section 5(2) of the Insolvency Act 2000. It allows a short time for a director to put their house in order while still a director, but avoiding sanctions for breach.

There is court discretion to extend the period after which the order commences if it wishes, but in practice it will only do this in exceptional circumstances. For example if a defendant could show that their options under CDDA 1986, s 17 (leave to act while disqualified) were not appropriate, eg where there may be a very good case for appeal. Inevitably any extension would be limited for a short period, and may be subject to restrictions.

It is a highly unusual for the period to be extended, and therefore very unlikely to be the case simply to allow an application for a hearing to determine if CDDA 1986, s 17 leave should

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