HomeCase studiesSMEs, directors & shareholdersCommercial litigationHelping a director obtain court permission to remain a director after a disqualification

Why the client needed our help

Our client was a director of a dry-cleaning company.

Unfortunately, due to substantial sums owed to the company by a third party creditor, the company entered liquidation with debts due and owing to the crown. This subsequently resulted in our client accepting a director disqualification undertaking of 6 years.

At the same time our clients’ other company was seeking to refinance various loans in place with the bank. As a director of this company the bank required her to remain on the board in order that they would agree the proposed refinancing of the company debts.

After discussing the options available to her it was clear she needed to remain as a director of her current business.

How we helped

We compiled detailed affidavit evidence in support of an application to the court for permission to be given for her to remain a director of the company despite director disqualification.

This entailed setting out in detail the background to the bank finance arrangements, evidence that HMRC debts had been settled, and other information to show effectively both how well the company was run and why it was vital that our client remained a director of the company.

The outcome

At the hearing, the Registrar agreed that permission should be given for our client to remain a director in respect of the company provided that certain conditions were met.

The Registrar made reference to the fact that the evidence before the Court proved that our client was essential to the ongoing running of the company and noted that the bank refinancing arrangement was likely to fail should our client have to resign as a director.

The result enabled our client to remain as director in a company which employs over 20 staff. The company continued to operate successfully for the remainder of the disqualification period.

I was greatly impressed with FWJ. Their commercial approach combined with specialist knowledge and tactical expertise was pivotal in the claim being dropped and costs recovered in full.

A director we defended in disqualification proceedings

Key contacts

Stephen Downie

Stephen Downie


Maria Koureas-Jones

Maria Koureas-Jones


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