On what grounds can a director be disqualified?

Behaviour leading to a director disqualification order

Examples of different types of misconduct leading to a director disqualification order include

(i) If you are convicted of an indictable offence (i.e. a criminal offence) in connection with the running of a company, this can also give rise to a disqualification as well as any criminal conviction [sections 2&5 of the Company Director Disqualification Act 1986].

(ii) If a company persistently breaches company’s legislation e.g. failing to file returns or other documents at Companies House. This again can lead to disqualification for a director or manager [section 3 of the Company Director Disqualification Act 1986].

(iii) If in the course of winding up a company it appears that a person has been guilty of an offence of fraud, this can lead to disqualification [section 4 of the Company Director Disqualification Act 1986].

(iv) Unfit conduct by the directors in the former company. This is the most common ground leading to disqualification [section 6 of the Company Director Disqualification Act 1986]. This is the most common ground leading to a disqualification.

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