Company Director Disqualification
Lincoln & Rowe advise company directors on their obligations and duties pursuant to the Companies Act 2006 and Insolvency Act 1986. The legislation places several statutory obligations on directors to act with reasonable care and skill, avoiding conflicts of interest, promoting the interest of the company and not making secret profits.
With certain types of misconduct, the Company Directors Disqualification Act 1986 sets out procedures for company directors to be disqualified. This means that if you fail to meet your legal responsibilities or your conduct is deemed ‘unfit’ you may be banned from being or becoming a company director. In cases of fraud, directors can face criminal prosecution including imprisonment. The period for which you are banned can range from 2-15 years and proceedings may be issued for up to two years. If you breach the terms of your disqualification, you may also face a fine or prison sentence.
When should I seek legal advice?
In these uncertain economic times, it is important that directors are aware of their duties and ensure they do not fall foul of them as if their company becomes insolvent, directors could be exposed to disqualification proceedings by the Insolvency Service in circumstances where their conduct is considered unfit.
Such conduct can include:
- Continuing to trade when the company is unable to pay its debts as and when they fall due
- Not paying tax owed by the company
- Failing to keep proper company accounting records
- Failing to send the company’s accounts and returns to Companies House
- Misfeasance through using the company’s money and/or assets for personal benefit
- Trading with the intent to defraud creditors
Lincoln & Rowe have extensive experience in advising directors on their duties, challenging disqualification proceedings and where disqualification is inevitable, mitigating disqualification proceedings by negotiating undertakings. If you need a professional legal advice you can trust, get in contact with one of our expert director disqualification solicitors today.
Undergoing the director disqualification process can be a stressful and uncomfortable time and can have huge consequences both financially and personally. Our dedicated team of disqualification lawyers are here to assist you with;
- Threatened director disqualification
- Defending director disqualification proceedings
- Director disqualification undertakings
- Disqualified directors’ restrictions
- Obtaining permission to remain a director even if disqualified
- Reducing a period of disqualification
- Dealing with claims in a Magistrates Court
- Opposing grounds for disqualification of directors
- Advising on possible breaches of a director disqualification order
- Disqualification compensation orders
- Director disqualification and compensation orders
- Negotiating settlement by director disqualification undertakings
To understand more, read our post about the grounds for Director disqualification: what do you need to know?
Speak to our disqualified directors’ lawyers today
If you are worried about the possibility of being disqualified from being a director, contact one of our team of disqualification solicitors now for practical and informed legal advice.
Who we can help
At Lincoln & Rowe we can assist a director personally or a company with a director facing disqualification.
Where can you find us?
Lincoln & Rowe Solicitors are based in the heart of London and just a few minutes’ walk from the Royal Courts of Justice. Our full address is 81 Chancery Lane, London WC2A 1DD.