This section explains when and how you can get disqualified from being a director of a company. Check how the company director disqualification process works if you get banned.
UNFIT CONDUCT: Failing to meet the legal responsibilities of a company director means you can get banned.
Being banned as a director results from 'unfit conduct' which can include:
Note: Anyone can report a disqualified director or their unfit conduct. As a rule, a Debt Relief Order or bankruptcy restrictions mean you cannot be a company director.
There are several reasons why The Insolvency Service might investigate a company. They may also investigate the company director 'personally'.
Either, or both, of these can happen if there is any involvement in insolvency proceedings. The same applies if someone made a complaint.
What happens if they believe a director failed to follow their legal responsibilities? In this case The Insolvency Service will inform them in writing:
In response, the company director who is getting disqualified can then choose between:
Note: Getting a letter about director disqualification from The Insolvency Service is a serious matter. It is best to get legal advice if it happens.
Other entities can also apply to have a company director disqualified. Under certain circumstances the other bodies include:
The worst cases of director disqualifications can be up to 15 years long. Once banned, directors cannot:
Note: Breaking the terms of a director disqualification can result in a fine or a sentence in jail for up to 2 years.
Details of the disqualification will get published online via:
What if you want to become the director of a company while disqualified? In this case you must ask a court for permission to do so. You may also need the help of a legal adviser.
There are several other restrictions that can also apply after disqualification. As a rule, disqualified company directors cannot:
Note: Carrying out company business on the instructions of a person already disqualified is illegal. It can result in a prosecution and you can get held 'personally' responsible for company debts.
Company Director Disqualification Proceedings in the United Kingdom