A director of a company can be disqualified after being found guilty of an indictable offence, or after being found guilty of three summary offences in the past five years. These offences must in some way be related to the management of the company. If you are facing directors disqualification following conviction, please contact us at Altion Law. We can help you navigate this difficult time, ensuring you achieve a positive result.
Director Disqualification Following Conviction
A director of a limited company can be disqualified following a criminal conviction. However, the rules vary depending on whether a director is convicted of an indictable offence, or a summary offence. Indictable offences are considered more serious and are usually heard in the Crown Court. Summary offences, on the other hand, are usually heard in the Magistrate’s Court.
Director Disqualification After Conviction of Indictable Offence
Section 2 of the Company Directors Disqualification Act 1986 says that a director can be disqualified following a conviction for an indictable offence – but only if the crime is connected to the management of the company.
The exact wording of the law states that a Disqualification Order can be made: ‘where an offender has been convicted of an indictable offence in connection with the promotion, formation, management, liquidation or striking off of a company.’
Therefore, it is not enough for the director simply to be found guilty of an indictable offence. Instead, the crime must be related to the director’s duties. For example, a director might be disqualified if he/she is found guilty of:
- Insider dealing
Director Disqualification After Conviction of Summary Offence
Section 5 of the Company Directors Disqualification Act 1986 says that a director can also be disqualified following a conviction for a summary offence – but only if there have been three convictions in the past five years.
Like indictable offences, the offence must be in some way related to the director’s management of the company.
The law states that: ‘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.’
For example, a director might be disqualified if he/she is repeatedly found guilty of:
- Failing to file documents with the registrar of companies
- Failing to give notice to the registrar of companies
Early Legal Advice for Director Disqualification
If you are subject to a Disqualification Order, you could be disqualified as a director for up to five years for a summary offence, and up to 15 years for an indictable offence. This can have a major impact on your life, restricting both your personal and professional development.
To minimise the potential consequences, please contact us at Altion Law. There may be or a reasonable explanation for your actions, and/or mitigating circumstances that need to be taken into account by the sentencing judge.
We can explore all possible lines of defence, ensuring that you achieve the best result possible.