Director Disqualification Solicitors
We can protect your career following company insolvency
Being disqualified from acting as a company director can affect your career for years to come, making it much harder to start again following a company insolvency. Our director disqualification solicitors can help you to avoid a disqualification or ensure it lasts the shortest time possible, giving you the chance to get back on your feet.
At Longmores, we are highly experienced in dealing with a range of insolvency and post-insolvency scenarios. We can offer clear, realistic advice and support to minimise the personal impact of an insolvency, including in relation to director disqualification.
We know how difficult it can be when a company becomes insolvent. Our approach is sensitive and non-judgemental but also very pragmatic. We have a keen focus on getting the best outcome for you, no matter your circumstances.
How we can help with director disqualification
Our director disqualification solicitors can assist with matters including:
- Written representations arguing Director Disqualification is not appropriate for the situation
- Negotiating to minimise the length of any disqualification
- Challenging proceedings brought for Directors Disqualification Order
- Court applications for a disqualified director to take a management role in a company
- Responding to alleged breaches of a Directors Disqualification Order
Access seasoned expertise for director disqualification
Directors facing disqualification can benefit from the expertise of our highly skilled team. This includes Partner Nat Young who has many years of experience advising on all manner of insolvency-related matters, including director disqualification.
You can also have the support of our Legal 500-ranked Company & Commercial team, helping clients with their wider business legal needs, including starting new companies following an insolvency.
Speak to us about director disqualification
To discuss your requirements with our director disqualification lawyers, please get in touch.
Our director disqualification solicitors’ fees
Our costs are transparent and reflect the benefit we can offer to directors facing disqualification. Our fees are based on the level of experience we provide and the outcomes we are able to achieve for our clients, so we strongly believe we provide excellent value.
We will be happy to discuss our fees and any third-party costs during your initial consultation with our team, so please don’t hesitate to contact us to find out more.
Director disqualification FAQs
What is director disqualification?
Director disqualification means an individual is banned from acting as a company director for a set period of time. This does not happen automatically if a company becomes insolvent – it will only happen if it is found that a director’s conduct has been ‘unfit’.
Being disqualified as a director means you cannot be a director of a UK registered company or an overseas company connected to the UK. You also cannot be involved in starting, running or promoting a company while disqualified as a director.
How long does disqualification as a company director last?
Director disqualification can last up to 15 years. The exact length of a disqualification will depend on factors, including the seriousness of the breaches of your duty as a director.
How does director disqualification happen?
Director disqualification proceedings will only happen if an official body applies to have you disqualified, with most dealt with by the Insolvency Service.
You will have the opportunity to oppose the disqualification if you believe it is unjustified. If you think the application is likely to succeed, you can agree to the disqualification by giving the Insolvency Service a ‘disqualification undertaking’. This can allow you to avoid court action.
Whether to fight or accept disqualification can be a very difficult decision, so you should always seek specialist legal advice before taking action.
Is it worth agreeing to disqualification as a director?
If you believe that you did act in an unfit way as a company director, agreeing to the disqualification at an early stage may be the best option. As well as saving you the cost, time and stress involved with court proceedings, this could potentially help to secure a shorter disqualification.
Before agreeing to disqualification, you must speak to a lawyer with experience in these matters. It is likely that being disqualified will have a long-term impact on your career, so it is important not to rush into a decision.
What happens if you breach the terms of a director disqualification?
You can be fined or face up to 2 years in prison if you breach the terms of a disqualification, so this is not something to be taken lightly.
Will I be disqualified as a director if my company goes bust?
In most cases, no. Disqualification would only be a possibility if it is alleged that you have seriously breached your duty as a director. For example, if you have allowed the business to keep trading when you knew or reasonably should have known it could not pay its debts.
Because director disqualification can have very serious long term consequences for your career, it is strongly recommended to seek expert legal advice if your business becomes insolvent, even if you believe you have acted in a fit and proper manner.
My company has become insolvent- will I be disqualified?
Nothing will automatically happen to directors when their company becomes insolvent. Ordinarily, you can immediately start a new company or join another company as a director or in another senior role. You will only be disqualified if, as set out above, you are alleged to have acted improperly.
What about if my company is dissolved?
Many companies are dissolved for valid reasons and without any issues arising. However, under recent legislation, directors of dissolved companies can also be disqualified where there has been misconduct.
Can disqualified directors be shareholders?
Yes, disqualified directors can own shares in limited companies. However, they cannot have a role in starting, running or marketing the company.
Can a disqualified director own a company
While someone who has been disqualified from acting as a company director can own shares, if they were the sole or majority shareholder, it would be hard to argue that they weren’t involved in running the company. It is, therefore, likely that this would be investigated, and if a breach of the disqualification were discovered, the penalties can be very serious (as set out above).
Can a disqualified director be a CEO?
No, a disqualified director cannot be involved in running a limited company, so would be ineligible for the role of CEO.
Can a disqualified director become a sole trader?
Yes, a director who has been disqualified can be a sole trader or enter a partnership (but not a limited liability partnership).
Can a disqualified director be an employee?
Yes, there is nothing legally preventing a director who has been disqualified from being employed by any type of business, including a limited company. However, it is likely that having been disqualified may impact your employability, so this is important to consider if you are facing disqualification.
When can a director be held personally liable in the UK?
Normally, directors of limited companies will not be held personally liable for any losses experienced by the business’s creditors. However, a director may be held personally liable if they are found to have acted improperly, e.g. if they engaged in misfeasance. There is therefore an overlap between conduct that leads to disqualification and conduct that can lead to a misfeasance claim.
Speak to us about director disqualification
To discuss your requirements with our director disqualification solicitors, please get in touch.
