ECSH34215 - Referrals: director disqualification

Disqualification is a civil process whereby an individual is banned from being:

• a director of any company registered in the UK, or
• a director of an overseas company that has connections with the UK, or
• a partner of a limited liability partnership, or
• from being directly or indirectly being involved in the promotion, formation, or management of a limited company without the permission of the court.

There may be cases when disqualified directors are still actively involved in the business and you may need to establish whether they are still acting as a director. The following list of evidence of a breach of directorship is not exhaustive, but examples could include:

• Dealing with the company’s bank, signing cheques, authorising other payments.
• Being involved in discussions/taking decisions regarding loans and overdrafts
• Dealing/negotiating with suppliers and customers.
• Hiring and firing of employees.
• Attending board meetings and other directors' meetings.
• Being in receipt of remuneration or other benefits (loans etc) comparable to other directors.
• Decisions regarding the company’s policy/direction.
• Having meetings and other contact with accountants, solicitors and other professional advisors to the company.
• Instructing other directors.

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)