Section 4 of the Company Director Disqualification Act 1986

Set out below in full is section 4 of the Company Director Disqualification Act 1986 setting out the general provisions relating to director disqualification for fraud in winding up.

Disqualification for fraud, etc. in winding up.

1. The court may make a disqualification order against a person if, in the course of the winding up of a company, it appears that he:

  • has been guilty of an offence for which he is liable (whether he has been convicted or not) under section 993 of the Companies Act 2006 (fraudulent trading), or
  • has otherwise been guilty, while an officer or liquidator of the company receiver of the company’s property or administrative receiver of the company, of any fraud in relation to the company or of any breach of his duty as such officer, liquidator, receiver or administrative receiver.

2. In this section “the court” means any court having jurisdiction to wind up any of the companies in relation to which the offence or other default has been or is alleged to have been committed; and “officer” includes a shadow director.

3. The maximum period of disqualification under this section is 15 years.

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