What is the Disqualified Directors Register?
The Disqualified Directors Register is maintained by Companies House. The 1986 Company Directors Disqualification Act requires that a register must be kept of all the people who have been disqualified from acting as company directors.
This means that the register includes a list of people who have been given disqualification orders, either by a Court or due to action undertaken by the Insolvency Service. It also includes information such as:
• The length of their disqualification
• The section of the 1986 Act under which they have been disqualified
• Any Exemptions a disqualified director has received from a Court in order to allow them to continue acting as a director for specified companies
The Disqualified Directors Register is open to the public for inspection and therefore is most often used by companies or organisations to find out whether a prospective director is currently disqualified. Once a disqualification order period has been completed, the record of the disqualification and the person’s name is deleted from the Register.
Do I need a specialist solicitor to represent me?
Yes- It is definitely advisable to seek specialist legal advice from a qualified solicitor if you think you are at risk of a Company Directors Disqualification Order.
Company Directors Disqualification Orders are based on specialised and sometimes complicated legislation such as:
• The Company Director Disqualification Act 1986 (as amended)
• Companies Act (2006)
Also, you are going to need the best possible specialist legal advice to help determine your best course of action – whether this is to try and defend your case or to minimise the length of any disqualification order by means of well argued mitigation.
How our specialist solicitors can help you
• Advising whether or not you could have a potential offence to any Disqualification Order application
• Ensuring that all relevant time limits are kept to
• Making sure all procedural steps both you and by the prosecution are carried out properly
• Advising whether a disqualification undertaking might be a beneficial option for you
• Building a defence if you are able to
• Assisting with your Summary of Truth
• Assisting with the Carecraft procedure if necessary, ie negotiating with the DTI Company Directors Disqualification Unit over a statement of facts and the penalty for your actions
• Representing you at court in any contested hearing
• Preparing and presenting mitigation on your behalf to keep down the length of any Company Directors Disqualification Order
• Preparing and making any necessary Court applications if you can show a need to remain as a director of another company despite a Disqualification Order.
Is a disqualification order a civil matter or a criminal offence?
While the 1986 Company Director Disqualification Act does allow for Disqualification Orders to be made in the criminal courts for some cases, most orders are bought in civil courts.
This is due to the fact that just because a director has been negligent or is unfit for their role, it does not mean that they have acted criminally. However, if they have acted in a criminal manner that relates to Companies Act legislation, this could be a case for the criminal courts.
Also, if a disqualified director then disobeys a Disqualification Order , this is a criminal offence and will be treated as such.
What is a shadow director?
The legal definition of a shadow director is someone who is not an appointed director, but who still instructs other, properly appointed directors on how to act.
For instance, majority shareholders sometimes occupy this role and persuade the appointed directors to act according to their wishes.
People who act as a shadow director are liable in the same way as an appointed director. This means that if the company goes into liquidation and they are found to have acted in a negligent manner or to have been otherwise unfit for the role, the liquidator can start proceedings against them.
It isn’t automatically an offence to be a shadow director, but it is often seen to raise risk levels and suggests that the company is trying to hide something by failing to list one of its directors.
However, you cannot be a shadow director if:
- You are undischarged bankrupt
- You are subject to a Director Disqualification Order or undertaking
Acting as a shadow director whilst you are subject to a Director Disqualification Order is a breach of the order – and could land you in prison.
Worried about a possible Company Directors Disqualification Order? Call us
If you are the subject of an application for a Company Directors Disqualification Order, don’t delay – contact our specialist team immediately.
o For FREE initial phone advice, phone (01722) 422300 or
o E-mail us at advice@disqualified-directors.co.uk