On What Grounds Can A Director Be Disqualified? - A General Guide on Unfitness

On what grounds can a director be disqualified – a general guide to director disqualification offences

Unfitness is governed by section 6 of the Company Director Disqualification Act 1986. Although cases are always judged on their own individual facts, certain common threads can be determined from the various decisions made by the Courts when determining unfitness pursuant to Section 6 of the CDDA 1986.

Grounds for director disqualification in relation to unfitness include

  1. Director Disqualification of a director for incompetence;
  2. Director Disqualification of a director for inactivity or failure to act;
  3. Director Disqualification of a director for failure to supervise or keep informed;
  4. Director Disqualification of a director for improperly delegating director functions;
  5. Director Disqualification of a director for continuing a failed business model;
  6. Director Disqualification of a director for excessive remuneration / pay;
  7. Director Disqualification of a director for failing to pay HMRC;
  8. Director Disqualification of a director for trading to the detriment of a creditors
  9. Director Disqualification of a director for misappropriation of company property
  10.  Director Disqualification of a director for conducting a policy of deliberately not paying HMRC
  11. Director Disqualification of a director for failing to delivery up company property and documentation;
  12. Director Disqualification of a director for retention of company property or money;
  13. Director Disqualification of a director for failing to prepare or file annual accounts or other accounting records;
  14. Director Disqualification of a director for paying one creditor in priority to other creditors in the face of imminent insolvency.

Contact expert director disqualification solicitors now

Francis Wilks & Jones is the county’s leading firm of solicitors. We are genuine experts in what we do with a combined experience of over 50 years in director disqualification claims. Contact one of our friendly expert director disqualification solicitors now for your consultation.

 

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