Conduct Giving Rise to a Finding of "Unfitness" Pursuant to Section 6 of the Company Director Disqualification Act 1986

Summary of section 6 of the Company Director Disqualification Act 1986 grounds of unfitness

Whilst not exhaustive, the following are common grounds of alleged unfitness in respect of the liquidated company in section 6 director disqualification claims:

(i)  Director disqualification of a director for failure to keep maintain, preserve or deliver up proper accounting records;

(ii)  Director disqualification of a director for failing to prepare/file annual accounts or any other statutory returns to Companies House;

(iii)  Director disqualification of a director for failing to deliver up company documents and property;

(iv)  Director disqualification of a director for conducting a policy of deliberately not paying HMRC debts;

(v)   Director disqualification of a director for trading to the detriment of creditors generally or specific creditors – this normally involves demonstrating a policy of non-payment of certain creditors;

(vi)  Director disqualification of a director for misapplication or retention of company money or property, either for less than the market value or for no consideration;

(vii)  Director disqualification of a director for paying one creditor in priority to others when insolvency is imminent;

(viii)  Director disqualification of a director for 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;

(ix) Director disqualification of a director for wrongful trading of the company [Section 214 Insolvency Act 1986];

(x)  Director disqualification of a director for fraudulent trading [Section 213 Insolvency Act 1986];

(xi)  Director disqualification of a director for general public interest breaches including mis-selling or misrepresenting sales to customers.

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