Can a company director be disqualified?


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



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.

2 years ago

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