What is prohibited for a disqualified director?
What is prohibited for a disqualified director?

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

  • What is prohibited for a disqualified director?
  • How can a director be disqualified?
  • Restrictions arising from disqualification under the CDDA 1986
  • What is prohibited under CDDA 1986 s 1?
  • 'Shall not be a director'
  • 'Act as receiver of a company's property'
  • 'Whether director or indirectly be concerned or take part in the promotion, formation or management of a company'
  • Shall not act as an insolvency practitioner
  • Restrictions arising from other statutory provisions
  • For further information, see:

How can a director be disqualified?

There are many ways in which a director may be disqualified, from the various sections under the Company Director's Disqualification Act 1986 (CDDA 1986) to the Insolvency Act 1986 (IA 1986) disqualifications, including disqualification as a bankrupt and under a Bankruptcy Restriction Order (BRO). For more information on these, see Practice Notes: How can a director be disqualified as a company director? and Bankruptcy Restriction Orders and Undertakings—overview.

It is not intended in this Practice Note to consider all restrictions imposed by a BRO or bankruptcy. For full details of these, see separate Practice Note: Effect and duration of bankruptcy restrictions orders (BROs) This Practice Note covers restrictions imposed from a disqualification under CDDA 1986, s 6, which is the most common form of disqualification.

This Practice Note does not cover the restrictions imposed by IA 1986, s 216 concerning prohibited names. For full information on these restrictions, see separate Practice Note: Prohibited names under section 216 of the Insolvency Act 1986.

Restrictions arising from disqualification under the CDDA 1986

A person may be disqualified under the CDDA 1986 either by way of a court order under CDDA 1986, s 1(1), or by way of an undertaking given under CDDA 1986, s 1A(1). The same restrictions apply to both, and consequently when we refer to a disqualification in this note, reference is to

Popular documents