The privilege of trading with limited liability is something that may be removed from an individual if they are disqualified as a director of a limited company. The reasons why a director may be disqualified can vary from negligence, unfit conduct, criminal behaviour and repeat offences.

What is directors disqualification

Director disqualification proceedings are often referred to as 'quasi-criminal' as they have a penal element to them. They are classed as civil proceedings, but they are a hybrid.  

There are various ways a director can be disqualified from acting as a director of a limited liability company. The most common of these is to be disqualified for 'unfit conduct' as a director of an insolvent company under Section 6 of the Company Directors Disqualification Act 1986 (CDDA 1986). The disqualification regime also applies to partnerships, shadow and de facto directors are also subject to provisions under the CDDA 1986. 

We understand the stress that directors disqualification proceedings can have on an individual. Such proceedings require a robust strategy and bespoke advice to provide you with the comfort and certainty you need to ensure that you are in good hands. 

Our specialist team has expertise in CDDA applications and extensive experience with negotiating conditions with the Secretary of State for Business, Energy & Industrial Strategy (BEIS) when seeking permission for a director to act. The scope of our experience includes seeking permission to act as a director even after the director in question has been disqualified, not once, but twice. 

Time is of the essence with directors disqualification proceedings as the Secretary of State will issue a press release once a disqualification order is made. It is therefore in your best interest to seek our advice at the outset so that a compelling and successful defence can be put forward on your behalf.