HomeFWJ TakeawayDirector disqualification claimsCommon reasons for disqualificationConduct giving rise to a finding of “unfitness” – section 6 of the Company Director Disqualification Act 1986

Section 6 of the Company Director Disqualification Act sets out all the key areas of misconduct which can lead to a disqualification order. Over the last 20 years our team has successfully defended directors across a wide range of allegations, from the commonly cited non payment of HMRC to much more unusual claims. We can help you.

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Below is a summary of section 6 and what can lead to a finding of unfitness and subsequent director disqualification.

Whilst not exhaustive, the following are common grounds of alleged unfitness leading to director disqualification are

  • a failure to keep maintain, preserve or deliver up proper accounting records;
  • failing to prepare/file annual accounts or any other statutory returns to Companies House;
  • failing to deliver up company documents and property;
  • conducting a policy of deliberately not paying HMRC debts;
  • trading to the detriment of creditors generally or specific creditors – this normally involves demonstrating a policy of non-payment of certain creditors;
  • misapplication or retention of company money or property, either for less than the market value or for no consideration;
  • paying one creditor in priority to others when insolvency is imminent;
  • trading in breach of legal and regulatory requirements – for example being involved in financial services schemes without having proper authority to provide such services by the FSA;
  • wrongful trading of the company [Section 214 Insolvency Act 1986];
  • fraudulent trading [Section 213 Insolvency Act 1986]; and
  • general public interest breaches including mis-selling or misrepresenting sales to customers.

Each of these areas has its own specific rules of evidence and legal argument. Our experts have successfully dealt with all of the above on many occasions.

Our expert director disqualification solicitors at Francis Wilks & Jones can help with your director disqualification enquiry. We are genuine experts in what we do with a combined experience of over 75 years in director disqualification proceedings. We successfully defend many claims against directors. Don’t risk second best, call our team today.

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