There are many grounds which give rise to disqualification as a director - the most of which by far relate to non payment of taxes to HMRC by the company. But there are other grounds such as improper delegation. Whatever the reason or allegations against you - our team has been successfully defending director disqualification claims since 2002. Let us help you.
One of the most astute appointments I have ever madeA company director we successfully defended against disqualification
As an act, delegation is permitted and indeed necessary in the smooth running of larger organisations. A person cannot be expected to do everything in a medium to large sized company.
The court’s view on delegation
The courts are clear on this point.
Whilst directors can delegate functions to other people in the management chain, such delegation does not absolve a person from a duty to supervise the discharge of the delegated function. Indeed, the responsibility, should things go wrong, rests not just with the director who delegated the task. It rests with the entire board of directors if there is one. It could constitute a director disqualification proceedings.
When delegating a function, role or task, a director should
- consider whether the person to whom the task or function is delegated has the appropriate skills and experience to carry out this task;
- ensure that the correct systems, individuals (e.g. mid-management) and structure is in place to ensure that adequate supervision of this individual is performed;
- if necessary, depending on the seriousness and financial risk to the company, obtain the board’s approval of the tasks being delegated and who to;
- ensure that there is a concise record of who is doing what and the reporting procedures. Quite commonly, this type of record is a combination of the employment contract, staff manual and regular appraisals.
However, it is important to realise that at all times the directors do have to have some trust in the employees of the company, as any failures by them are ultimately the directors’ responsibilities.
Our expert team of director disqualification solicitors at Francis Wilks & Jones are here to help you with any type of legal question. Contact one of our expert friendly lawyers now for your confidential consultation. Whatever your needs, we can show you examples of similar cases we have successfully helped our clients with.
I would strongly recommend using FWJ for director disqualification matters. Tactically and commercially they played it just right and I am now able to get on with my business life without the worry of disqualification hanging over meA director we defended in disqualification proceedings