Director disqualification is a major issue and you need to understand this process. It is important to understand how directors can be disqualified, how the process works and what the consequences of this are.

How Can Directors Be Disqualified

Director disqualification will occur when the directors conduct has been reported as being unfit. It is possible for anyone to report a director for unfit conduct. There are many different points that will fall into unfit conduct and you need to be aware of these, find out more at

Unfit conduct may include allowing a company to continue trading when it is unable to pay its debts. Not keeping good accounting records and nit sending accounts to Companies House will also fall under this. Not paying tax and using company money for personal benefits will also be viewed as unfit conduct.

How The Disqualification Process Works

If a complaint has been made or your company is involved in insolvency proceedings, the Insolvency Service will investigate the company. During this investigation, the Insolvency Service will look into your conduct as a director to see if you have acted in a way that is unfit. If they find that your conduct was unfit, they will inform you of this in writing.

The communication that you receive will state what they think you have done which makes you unfit to be a director as well as the fact that they are going to start the disqualification process. You will also be informed about how you can respond to this. At this point, it is recommended that you consult with a disqualification solicitor who will be able to help you respond.

There are other legal bodies that can apply for you to be disqualified as a director as well. These bodies will include Companies House, the Competition and Markets Authority and a company insolvency practitioner. Of course, for these applications, certain circumstances will need to be met.

The Consequences Of Disqualification

If you are disqualified as a director, you will retain this status for 15 years. During this time, you will be barred from acting as a director for any company that is registered in the UK. If the company is registered outside of the UK, but has connections to the UK, you will also be barred from directorship.

You will also be unable to form or market a company during this time. You will also not be allowed to run a company in the UK.

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