If you are facing the possibility of receiving a Disqualified Director Order then you demand to seek legal advice at the earliest opportunity. The implications of such an order are quite far reaching. Legal representation will aid ensure you formulate the best defence imaginable.
Disqualifications can also apply to human beings who are not formally registered as a director however act in that capacity, or ‘shadow’ directors where they are acting on someone else’s behalf.
The laws governing the whole issue of disqualified directors are the Corporation Directors Disqualification Act of 1986 and the 2006 Companies Act. The concept of directors being unfit to fulfil their duties and therefore liable to a ban was introduced by the 1986 Act. Of direction, the director in inquiry has the fair to defend any action. If that choice is taken it is advisable to seek specialist legal representation.
A director may also be able to negotiate disqualification under a Disqualification Undertaking instead, thereby accepting a ban however escaping court proceedings and potentially heavy litigation costs. However, before such a choice is taken it is still advisable for any prospective disqualified directors to seek legal advice. This is since any solicitor struck may well be able to aid identify mitigating circumstances which, if accepted by the court, might see the length of any disqualification reduced considerably.
The main cause why it is so vital to consult with specialist solicitors who deal with disqualified directors cases is since the consequences are so severe. The names of those banned appear on the Disqualified Directors Register. The length of bans for disqualified corporation directors can range from two to 15 years. Hence the advantage of seeking the services of solicitor to learn if there are mitigating circumstances if no defence is imaginable.
During the period of disqualification, disqualified corporation directors are not be able to act as directors, much as shadow directors or to continue managing any corporation. He or she will also not be able to locate up another limited liability corporation or manage it. During a ban they will only be able to run a business as a sole trader or in a partnership. This method they will lose the protection of limited liability provided by the structure of a corporation.
By consulting with a specialist solicitor upon receiving notice of Disqualified Directors Order proceedings the director will be taking steps to protect himself. The specialist solicitor will have the skills and familiarity to deal with the condition, either when presenting evidence on the client’s behalf, or identifying any mitigating circumstances.
Dealing with a Disqualified Directors Order can be quite difficult. If you want more information then contact Bonallack & Bishop, they specialise in advising and representing disqualified company directors. Senior Partner Tim Bishop is responsible for all major strategic decisions.