On What Grounds Can I Be Disqualified As a Company Director?

As a company director, you are responsible for everything that happens to your business. Sometimes financial difficulties can arise, and if a Court deems you to have acted unlawfully during a period of hardship, you can be issued with a disqualification order that prevents you from leading any company for up to fifteen years.

Some company directors who have behaved unlawfully by not honoring their creditors will choose to voluntarily sign a disqualification undertaking, which means that proceedings won’t go through court. However, the laws remain the same – and a ban remains in place that prevents these individuals from becoming involved with a company setup at any stage. If an undertaking or order is breached, a prison sentence of up to two years can be issued, along with a further elongated period of disqualification.

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