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Director disqualification is a serious legal action that prevents an individual from managing or directing a company. This article covers everything about disqualified directors, including the Company Directors Disqualification Act 1986, the consequences of disqualification, and how to search for disqualified directors.
What Happens If You Are Disqualified as a Director?
When a director is disqualified, they cannot be involved in the management of a company for a set period, usually between 2 and 15 years. During this time, they cannot:
- Act as a company director
- Influence or manage a company behind the scenes
- Form, market, or run a new business under someone else’s name
Violating these restrictions can result in legal penalties, fines, and even imprisonment.
Company Directors Disqualification Act 1986
The Company Directors Disqualification Act 1986 was introduced to prevent individuals from mismanaging companies and causing harm to creditors.
Key Sections of the Act
- Section 7 – Allows authorities to take action against a director for misconduct.
- Section 2 – Covers disqualification due to bankruptcy.
- Section 6 – Disqualification due to wrongful or fraudulent trading.
This Act helps maintain transparency and accountability in corporate governance.
How to Check If Someone is a Disqualified Director
To check if someone has been disqualified, you can use a company director search tool. Some common methods include:
- The Disqualified Directors List – Available on government websites.
- Google Trends & Answer the Public – Helps track rising searches about director disqualification.
- Company records and regulatory websites – Provide official confirmation.
Why Are Directors Disqualified?
A director can be disqualified for various reasons, including:
- Fraudulent activity
- Failing to keep proper financial records
- Not filing company accounts or tax returns
- Trading while insolvent
Final Thoughts
Being disqualified as a director has serious legal and professional consequences. Understanding the Company Directors Disqualification Act and checking for disqualified directors can help businesses stay compliant and avoid legal issues.
