Can a company director be disqualified?

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Hello, I’ve got a tiny question. I’m curious as to whether a company director can be disqualified. And if so, how or why might this happen? Thank you

Answers

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Yes, company directors can be disqualified from acting in the same or similar capacity for up to 15 years. Disqualification can occur when a director fails to meet his or her legal obligations and their conduct is deemed ‘unfit’ by the Insolvency Service, Companies House, the Competition and Markets Authority, the courts or a company insolvency practitioner.

Unfit conduct includes:

  • Failure to maintain proper accounting records
  • Failure to send annual accounts and annual returns to Companies House
  • Failing to pay business taxes to HMRC
  • Continuing to trade when the company is insolvent
  • Using company money or assets for personal benefit

Directors are automatically disqualified if the are declared bankrupt, issued a Debt Relief Order or subject to bankruptcy or debt relief restrictions.

A disqualified director cannot be a director of another UK company or an overseas company with UK connections, nor can they be involved in setting up, promoting or running a company in any other way - this includes being a company secretary or a member of an limited liability partnership.

a year ago
 

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