HomeFWJ TakeawayResourcesDirector disqualification for using phoenix companies and reusing company names

There are many grounds which give rise to disqualification as a director - the most common of which by far relate to non payment of taxes to HMRC by the company. But there are other grounds such using phoenix companies without proper permission. Whatever the reason or allegations against you - our team has been successfully defending director disqualification claims since 2002. Let us help you.

I was delighted by the work done by the team at FWJ and cannot recommend them highly enough. Their legal and tactical knowledge was spot on. I can now continue to grow my business free from the worry of my original disqualification

A director we defended against a disqualification claim

A phoenix company may be used to prefer favoured creditors, mislead creditors and the public into believing the same business is continuing to trade (even though it has entered into liquidation) or enabling the continued provision of credit to pay for that director’s lifestyle.

Under current legislation (section 216 of the Insolvency Act 1986) this is prohibited and is both a

  • criminal offence (which a liquidator is legally required to report to governmental authorities and which can attach a director disqualification order);
  • and a civil offence (where the director can be pursued for losses incurred by creditors of the phoenix company.

The breach of this legislation is quite commonly a basis for director disqualification proceedings and it is usually a difficult issue for an individual without legal knowledge to deal with. However there are statutory exceptions to the rule (which perhaps should be considered when it is intended to continue trading in the old company name) which can be relied on to rebut any allegations of unfitness.


Francis Wilks & Jones is the county’s leading firm of director disqualification solicitors. We are genuine experts in what we do with a combined experience of over 75 years in director disqualification claims. Contact one of our friendly solicitors now for your consultation.

If there was ever a star rating for law firms, Francis Wilks & Jones would score five stars plus. Professional and pro-active, they were able to understand my problem quickly, provide expert advice, outline a solution and put it into place with a successful outcome. I should have gone to them sooner

A client we successfully defended in director disqualification and insolvency related proceedings

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