Directors Disqualification Case Study

Agreeing undertaking with insolvency service

Director - Pine Furniture Company

Our client was a director of a Pine Furniture Company which entered into liquidation. The Insolvency Service issued proceedings against him in respect of monies owing to the Crown totalling £85,000.

The Insolvency Service was seeking a disqualification of 9 years against our client. Based on the evidence supplied, the period sought was in our view excessive and would have also prohibited our client being able to seek leave to continue being a director of a company pursuant to Section 17 of the CDDA if he so chose.

What we did:

As a result, we drafted detailed affidavit evidence dealing with many of the issues raised by the Insolvency Service with a view to lowering the period of undertaking being sought against our client.

The Result:

As a result of the affidavit evidence filed, the period of undertaking was reduced to 5 ½ years, enabling our client the possibility to then seek leave from the Court to continue being a director of a company if he so chose.