Section 15 of the Company Director Disqualification Act 1986

Set out below in full is section 15 of the Company Director Disqualification Act 1986 setting out the general provisions relating to personal liability for company’s debts where a person acts while disqualified.

Personal liability for company’s debts where person acts while disqualified

1. A person is personally responsible for all the relevant debts of a company if at any time:

  • in contravention of a disqualification order or disqualification undertaking or in contravention of section 11, 12A or 12B of this Act he is involved in the management of the company, or
  • as a person who is involved in the management of the company, he acts or is willing to act on instructions given without the leave of the court by a person whom he knows at that time:
    •      to be the subject of a disqualification order made or disqualification undertaking accepted under this Act or under the Company Directors Disqualification (Northern Ireland) Order 2002, or
  • to be an undischarged bankrupt.

2. Where a person is personally responsible under this section for the relevant debts of a company, he is jointly and severally liable in respect of those debts with the company and any other person who, whether under this section or otherwise, is so liable.

3. For the purposes of this section the relevant debts of a company are:

  • in relation to a person who is personally responsible under paragraph (a) of subsection (1), such debts and other liabilities of the company as are incurred at a time when that person was involved in the management of the company, and
  •  in relation to a person who is personally responsible under paragraph (b) of that subsection, such debts and other liabilities of the company as are incurred at a time when that person was acting or was willing to act on instructions given as mentioned in that paragraph.

4. For the purposes of this section, a person is involved in the management of a company if he is a director of the company or if he is concerned, whether directly or indirectly, or takes part, in the management of the company.

5. For the purposes of this section a person who, as a person involved in the management of a company, has at any time acted on instructions given without the leave of the court by a person whom he knew at that time:

  • to be the subject of a disqualification order made or disqualification undertaking accepted under this Act or under the Company Directors Disqualification (Northern Ireland) Order 2002, or
  • to be an undischarged bankrupt,
  • is presumed, unless the contrary is shown, to have been willing at any time thereafter to act on any instructions given by that person.

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