Not only is breaching a Director Disqualification Order (‘DDO’) a criminal offence , potentially leading to a prison sentence, but any disqualified person incurring company debt faces the possibility of personal liability for such debt, even when incurred in a company’s name.
Furthermore, any person fulfilling the role of ‘shadow director’ for that disqualified person may also become personally responsible for such debt if incurred in circumstances when it was known that the person providing the instructions was disqualified.
The Relevant Law | Kangs DDO Advisory Team
Section 15 Company Directors Disqualification Act 1986 (‘the Act’) provides that a person is personally responsible for all the relevant debts of a company if at any time –
- in contravention of a DDO or disqualification undertaking he is involved in the management of a company or
- as a person who is involved in the management of the company acts on instructions, given without leave of the court, by a person known to be the subject of a DDO or disqualification undertaking.
The liability is joint and several with the company and any other person who is also liable under the section.
A person is involved in the management of a company if he is a director of the company or if he is concerned, whether directly or indirectly, or takes part, in the management of the company.
How Can We Help? | Kangs National Regulatory Team
Kangs Solicitors is accustomed to being instructed by clients on a national basis who have become potentially liable for debt and prosecution as the result of breaches of the Act.
Our specialist team of lawyers can guide and advise you in the event that you find yourself in this position any proceedings that may follow, which may involve both criminal and civil elements.
Who Can I Contact For Help? | Kangs Solicitors
Please feel free to contact our team through any of the following: