Section 7 of the Company Director Disqualification Act 1986

Set out below in full is section 7 of the Company Director Disqualification Act 1986 setting out the general provisions relating to director disqualification orders, director disqualification undertakings and director disqualification reporting provisions.

Disqualification order or undertaking; and reporting provisions

1. If it appears to the Secretary of State that it is expedient in the public interest that a disqualification order under section 6 should be made against any person, an application for the making of such an order against that person may be made:

• by the Secretary of State, or
• if the Secretary of State so directs in the case of a person who is or has been a director of a company which is being or has been wound up by the court in England and Wales, by the official receiver.

2. Except with the leave of the court, an application for the making under that section of a disqualification order against any person shall not be made after the end of the period of 2 years beginning with the day on which the company of which that person is or has been a director became insolvent.

2a. If it appears to the Secretary of State that the conditions mentioned in section 6(1) are satisfied as respects any person who has offered to give him a disqualification undertaking, he may accept the undertaking if it appears to him that it is expedient in the public interest that he should do so (instead of applying, or proceeding with an application, for a disqualification order).

3. If it appears to the office-holder responsible under this section, that is to say:

• in the case of a company which is being wound up by the court in England and Wales, the official receiver,
• in the case of a company which is being wound up otherwise, the liquidator,
• in the case of a company which is in administration, the administrator,
•  in the case of a company of which there is an administrative receiver, that receiver,

that the conditions mentioned in section 6(1) are satisfied as respects a person who is or has been a director of that company, the office-holder shall forthwith report the matter to the Secretary of State.

4. The Secretary of State or the official receiver may require the liquidator, administrator or administrative receiver of a company, or the former liquidator, administrator or administrative receiver of a company:

• to furnish him with such information with respect to any person’s conduct as a director of the company, and
• to produce and permit inspection of such books, papers and other records relevant to that person’s conduct as such a director,

as the Secretary of State or the official receiver may reasonably require for the purpose of determining whether to exercise, or of exercising, any function of his under this section.

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