Director disqualification (UK)
A court may make a disqualification order, or a person may give a disqualification undertaking, under the applicable law. For example, unfit conduct in connection with an insolvent company may lead to disqualification; duration and conditions depend on the statutory ground. A disqualified person must not act as director or take part in promotion, formation or management without applicable permission. Disqualification proceedings and criminal liability for breach are distinct.
Worked example
Following an investigation into an insolvent company, a court makes a disqualification order. The person must observe its restrictions unless permission applies.
Common mistake
Assuming every insolvent company automatically causes its directors to be disqualified.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | LW (ENG) | Direct | September 2026–June 2027 |
| ACCA | LW (GLO) | Direct | September 2026–June 2027 |