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Director Disqualification

Being disqualified as a director can hugely impact your professional life and your ability to get on in business. Not only can it affect your professional career, it can have an impact on other areas of your life as well. It is very important if you are a director and you see the possibility of disqualification on the horizon, or you simply want advice to ensure your position, that you get in contact with the specialist commercial litigation solicitors at Jones Whyte. We have a wealth of experience and knowledge, which will enable us to protect you against the detrimental effects of disqualification.

Reasons for Disqualification

The rules around director disqualification are laid down in the Company Directors Disqualification Act 1986. Broadly, there are four grounds for disqualification as a director:

  • wrongful trading (trading while insolvent);
  • unfit conduct;
  • not following filing rules laid down in the Companies Act; or
  • failing to comply with competition law.

What is Unfit Conduct?

Unfit conduct is a broad term, so it may help you understand some of the things expected of you and what you should and should not be doing as a director. Examples of unfit conduct include:

  • allowing your company to continue trading when it is insolvent;
  • not preparing proper accounting records;
  • not submitting tax returns or paying owed tax;
  • using company money or assets for your own use;
  • not sending proper returns and accounts to Companies House;
  • depriving creditors of assets;
  • fraudulent trading; or
  • not following instructions from the Official Receiver or insolvency practitioner.

Consequences of Disqualification

Being disqualified as a director doesn’t just affect your professional life. Once you have been disqualified as a director, you will be unable to become the director of a company without the prior agreement of the court and you won’t be able to be directly or indirectly involved with the setting up, management or promotion of a company. This could be for up to 15 years. On top of that, though, you may face the following restrictions:

  • schools won’t let you be a governor;
  • you won’t be able to be a trustee of a charity without the say-so of the court;
  • you would need the permission of the Pensions Regulator to be trustee of a pension scheme;
  • you could be barred from health and social care organisations; and
  • you could be banned from being a member of professional organisations.

Contact Director Disqualification Solicitors in Glasgow, Scotland

The specialist commercial litigation solicitors at Jones Whyte can help you avoid the detrimental fallout of director disqualification, and we may be able to help you avoid director disqualification altogether if you contact us soon enough. The dedicated solicitors at Jones Whyte have the knowledge, experience and expertise necessary to assist you in every aspect of your matter. Our head office is in Glasgow, either pop in to our offices or call us on 01413751222, or email This email address is being protected from spambots. You need JavaScript enabled to view it..

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