Section 17 of the Company Directors Disqualification Act 1986 (‘the Act’) makes provision for a disqualified director to seek permission from the Court to remain as a director of a company and remain involved in the management of a company despite such disqualification.
Timothy Thompson of Kangs Solicitors outlines the position.
The Law | Company Director Disqualification Act 1986 | Kangs Solicitors
Section 17 of the Act states:
Application for leave under an order or undertaking.
(1) Where a person is subject to a disqualification order made by a court having jurisdiction to wind up companies, any application for leave for the purposes of section 1(1)(a) shall be made to that court.
(a) a person is subject to a disqualification order made under section 2 by a court other than a court having jurisdiction to wind up companies, or
(b) a person is subject to a disqualification order made under section 5,
any application for leave for the purposes of section 1(1)(a) shall be made to any court which, when the order was made, had jurisdiction to wind up the company (or, if there is more than one such company, any of the companies) to which the offence (or any of the offences) in question related.
(3) Where a person is subject to a disqualification undertaking accepted at any time under section [F25A,] 7 or 8, any application for leave for the purposes of section 1A(1)(a) shall be made to any court to which, if the Secretary of State had applied for a disqualification order under the section in question at that time, his application could have been made.
Application Considerations | Kangs Director Disqualification Solicitors
the Insolvency Service states:
‘applicants will have to satisfy the court that they have a reasonable need to do what they are asking – not just that they want to be a director. They must also satisfy the court that, if it gives the permission requested, the public will be adequately protected and therefore the court may require safeguards and may impose conditions/restrictions on the applicant’.
Matters to be considered include:
A Disqualification Order requires a director to resign within twenty one days. Accordingly, if it is wished to continue as a director from the end of this period, an immediate application is necessary.
- Preparing the Application
Detailed witness statements and financial evidence will need to be prepared in support of the application.
- The Insolvency Service
The Insolvency Service will be heavily involved and will pursue detailed enquiries.
- Original reasons for Disqualification
Previous conduct and reasons behind the finding of unfitness will be paramount amongst the court’s considerations.
How Can We Help You? | Kangs National Director Disqualification Solicitors
Anyone seeking to make an application as outlined above should seek immediate expert guidance. We have a team of solicitors who are able to assist clients in all aspects of director disqualification proceedings.
Please feel free to contact our Team through any of the below mentioned who will be happy to provide you with some initial advice on the prospects of an application.