26/06/19

Disqualified Directors | Continuing Company Role | Kangs Director Disqualification Solicitors

Share

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.

(2) Where—

(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:

  • Timing

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.

If we can be of assistance, our Team is available via telephone 0333 370 4333 and by email info@kangssolicitors.co.uk.

We provide initial no obligation discussion at our three offices in London, Birmingham and Manchester.

Alternatively, discussions can be held virtually through live conferencing or telephone.

Hamraj Kang

Email Hamraj

07976 258171

020 7936 6396

0121 449 9888

John Veale

Email John

0121 449 9888

020 7936 6396

0161 817 5020

Tim Thompson

Email Tim

0121 449 9888

020 7936 6396

0161 817 5020

Health & Safety, Regulatory
As can be seen from reports appearing in previous articles on this website, breaches of Health and Safety Law are regularly attracting severe sentences for both the defaulting companies and their directors. John Veale of Kangs Solicitors Comments generally. Sentencing Examples | Kangs Sentencing Advisory Team Company director Companies Court Sentencing Guidelines | Kangs Regulatory […]
16/12/19
Environmental Agency, Regulatory
Kangs Solicitors has successfully represented a client facing allegations of contraventions of Section 33 Environment Protection Act 1990 and Regulation 38(1) Environmental Permitting Act (England and Wales) Regulations 2010 arising from an investigation conducted by the Environment Agency which commenced in December 2014. John Veale of Kangs Solicitors reports upon the circumstances. The Circumstances | […]
02/12/19
Health & Safety, Regulatory
Aylesbury Crown Court has imposed a substantial fine upon a company (‘the company’) as the result of a number of its employees having suffered Hand Arm Vibration Syndrome (‘HAVS’).       Amandeep Murria of Kangs Solicitors sets out the circumstances. The Circumstances | Kangs Solicitors Health and Safety Team The Health & Safety Executive conducted a […]
22/11/19

Get in touch