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Director Disqualification

 

What can a person do if he / she can't get their application pursuant to section 17 of the Company Director Disqualification Act 1986 heard within 21 days?

Andy Wilks
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The person resigns his/her position and waits until they can obtain a court date to hear the application. The person could alternatively apply for an extension to the 21 day period whilst he/she gets the application in order. The individual could apply...

What happens if the person who obtains permission then breaches a condition of his / her director disqualification order?

Andy Wilks
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If a condition in the director disqualification order imposed by the court is breached, the following happens: The permission ceases to exist. The person concerned would then be in possible breach of the original director...

Can a person remain a sole director of his / her business when seeking permission to remain a director pursuant to Section 17 of the Company Director Disqualification Act 1986?

Andy Wilks
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The answer is no.  The court will require a co-director of sufficient standing to be appointed – normally a qualified accountant or someone of similar standing. The longer the period of disqualification – the more qualified that...

Is there a requirement to demonstrate a "need" to be a director in the business when seeking permission?

Andy Wilks
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The strict answer no, but it is something which the court will undoubtedly look at and it is true that the greater a person demonstrates a “need” to be in the business, the more helpful it is for that person’s prospects of success.   ...

What happens if the breach of condition is not foreseeable?

Andy Wilks
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If the breach cannot be foreseen (eg a fellow director of the business dies unexpectedly), the order will normally allow the person a certain period of time to rectify the matter. However, the person must act promptly to remedy the situation (eg...

What happens if the person who has obtained permission thinks he/she is in danger of breaching a court imposed condition of their permission?

Andy Wilks
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If a person can foresee a situation where one of the original conditions of leave will not be possible to continue with, that person must make an application to the court in advance of the change to vary or discharge that particular condition.   For...

Can the conditions in a person's order for permission be varied at a later date?

Andy Wilks
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Yes – so long as the original order is worded in such a way as to allow this. However, the court is highly unlikely to allow retrospective variations even though the case authorities suggest it is a possibility....

Will the court impose any conditions on a person when granting permission pursuant to Section 17 of the Company Director Disqualification Act 1986?

Andy Wilks
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The answer is yes. It will apply conditions it believes are needed to protect the public from what happened before, happening again. ...

Can the court grant permission for a limited period only?

Andy Wilks
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The answer is yes. It may do this because: It wants to be convinced that the company can trade on a solvent basis in the future and thus allow permission for a short period of time to allow the person making the application time to convince the court that...

Does it matter if the individual subject to the director disqualification order has been involved in a number of other insolvent companies?

Andy Wilks
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It can have a bearing as the court is allowed to consider the number of insolvent companies a person has been involved in when deciding to grant permission. In order to overcome this, it is sensible to offer an explanation as to the other insolvencies to the...

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