Whilst Disqualified, Is It Possible For Director To Manage And Run New Business?

Not necessarily. A disqualification order usually precludes the disqualified director from being involved in “the promotion, formation or management” of another limited company, during the period of the disqualification. “Management” is widely construed and it is very easy for a director to become involved in a new business and innocently be in breach of a disqualification order. Such a breach has criminal and civil consequences for the director.

Did you know that by fulfilling management roles such as hiring staff, controlling the company bank account or taking what might be regarded as executive decisions, may all be seen as breaching the disqualification order or undertaking.

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