company director disqualification , Dorset and Somerset Solicitors, Humphries Kirk

Director Disqualification

| Published on October 23, 2015

Company Director Disqualification

New director disqualification measures are in place.  The Department for Business, Innovation and Skills (BIS) have published these new measures within the Small Business, Enterprise and Employment Act 2015.

One aim of the new measures is to strengthen business and consumer confidence that directors who breach their duties, will face action, and could be barred from holding directorship.

The rules clarify the procedure for reporting director misconduct and introduce greater transparency on what misconduct can lead to disqualification.

Under the new rules the court may, if it thinks fit, disqualify a director for up to a maximum of 15 years. In deciding this, a judge will now look into the past conduct of a director, including any previous breaches of law or previous business failures.

The rules also provide fundamental consumer protection in that the court can now order a director to compensate those who have suffered loss, as a result of a director’s misconduct or business failure.

In addition, disqualification proceedings can now be started in the UK where there has been misconduct by a director in an overseas company. With the huge growth in the European trading markets over the last decade, the need for this change has become increasingly important.

The changes give consumers heightened protection from director’s failures and greater transparency on how director misconduct can be reported and will be dealt with.

It is hoped that the new measures will deter directors from acting in an improper way.

If you are a director and want to know more, or if you believe that you have been affected by the misconduct of a director or business, get in touch with Humphries Kirk’s commercial team.


Contact the commercial team at our offices in Poole on 01202 725400 or Dorchester on 01305 251007.

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