Disqualification from being a company director

1.    Where an offender has been convicted of an indictable offence in connection with the promotion, formation, management, liquidation or striking off of a company, with the receivership of a company’s property or with his being an administrative receiver of a company (Company Directors Disqualification Act 1986, s.2) or

2.    Where an offender has been convicted of an offence involving a failure to file documents with, or give notice to, the registrar of companies. If the offence is triable only summarily, disqualification can be ordered only where the offender has been the subject of three default orders or convictions in the preceding five years (Company Directors Disqualification Act 1986, s.5)

The period should be fixed by reference to the charges alleged and made out against the director.

Disqualification periods of 10 years and over should only be imposed in particularly serious cases such as a second disqualification.

Disqualification periods of six to 10 years apply to serious cases.

Disqualification periods of up to five years are appropriate in less serious cases.

In assessing seriousness, relevant considerations may include:

• whether the failures came about deliberately or with knowledge of their potential result and the harm they would cause, or through lack of knowledge or incompetence, and
• whether the failures were “one off” or part of a pattern.

The length of the order should not be subject to a guilty plea discount, but factors such as previous good character and a plea of guilty may be relevant considerations in determining the level of seriousness.

Where a disqualification order is made against a person who is already subject to such an order, the periods specified in those orders shall run concurrently.

Unless the court orders otherwise, the period of disqualification will begin at the end of the period of 21 days beginning with the date of the order. (Company Directors Disqualification Act 1986, s.1(2))

Crown Court – 15 years