Section 9 of the Company Director Disqualification Act 1986

Set out below in full is section 9 of the Company Director Disqualification Act 1986 setting out the general provisions relating to matters determining unfitness of directors in director disqualification claims.

Matters for determining unfitness of directors

1. Where it falls to a court to determine whether a person’s conduct as a director or any particular company or companies makes him unfit to be concerned in the management of a company, the court shall, as respects his conduct as a director of that company or, as the case may be, each of those companies, have regard in particular:

  •  to the matters mentioned in Part I of Schedule 1 to this Act, and
  •  where the company has become insolvent, to the matters mentioned in Part II of that Schedule;

and references in that Schedule to the director and the company are to be read accordingly.

1a.  In determining whether he may accept a disqualification undertaking from any person the Secretary of State shall, as respects the person’s conduct as a director of any company concerned, have regard in particular:

  • to the matters mentioned in Part I of Schedule 1 to this Act, and
  • where the company has become insolvent, to the matters mentioned in Part II of that Schedule;

and references in that Schedule to the director and the company are to be read accordingly.

2. Section 6(2) applies for the purposes of this section and Schedule 1 as it applies for the purposes of sections 6 and 7 and in this section and that Schedule “director” includes a shadow director.

4. The Secretary of State may by order modify any of the provisions of Schedule 1; and such an order may contain such transitional provisions as may appear to the Secretary of State necessary or expedient.

5. The power to make orders under this section is exercisable by statutory instrument subject to annulment in pursuance of a resolution of either House of Parliament.

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