Director disqualification reform

The key changes to the director disqualification legislation have been from the Small Business Enterprise and Employment Act 2015 included the following additions to the Company Director Disqualification Act 1986:

  1. The Secretary of State is able now to bring in wider evidence than previously into director disqualification proceedings. This is pursuant to Section 109 of the Small Business Enterprise and Employment Act 2015. These new director disqualification grounds include convictions abroad by a director and also on a wider basis include individuals who were not directors but who exerted influence over the director in question who was later shown to be unfit and should be subject to a director disqualification order. These can be used as a new director disqualification breach.
  1. Important changes took place to the limitation period of director disqualification proceedings to be commenced by the Secretary of State. Pursuant to Section 108 of the Small Business Enterprise and Employment Act 2015, the director disqualification limitation period was increased from 2 to 3 years. This effectively means that the Secretary of State now has a longer period to investigate the affairs of the company following liquidation of it and the former directors of the liquidated company now have to wait 3 years to be in the clear in case director disqualification allegations are raised against them.
  1. The major final change to the Company Director Disqualification Act 1986 legislation is in relation to something known as director disqualification compensation orders. Section 110 of the Small Business Enterprise and Employment Act 2015 has bought in an entirely new provision called compensation orders. These types of director disqualification orders mean that a director subject to a director disqualification order or a director disqualification undertaking may find himself/herself the subject of a financial claim by the Secretary of State for repayment into the liquidated company losses attributable to that person’s misconduct. It is a very major change in the director disqualification legislation regime and one which expert director disqualification solicitor advice is recommended.

Contact an expert director disqualification solicitor now

Our expert team of director disqualification solicitors at Francis Wilks & Jones are here to help you with any type of director disqualification enquiry. Contact one of our expert friendly director disqualification lawyers now for your and confidential consultation. Whatever your director disqualification requirements, we can show you examples of similar cases we have successfully assisted with.


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