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Director Disqualification Proceedings

If you are a director of an insolvent company, and you are facing investigation by the Liquidator or the Secretary of State, then Blacks Solicitors can help.

When a company becomes insolvent it is possible that action might be taken against its directors. This could be by way of misfeasance or wrongful trading proceedings by the Liquidator. Or it could be by way of action by the Secretary of State, following receipt of an adverse report from the Liquidator relating to the conduct of the director prior to the liquidation.

Action by the Secretary of State usually takes the form of disqualification proceedings, aimed at preventing a former director from being able to act as a director of a limited company for a period of up to 15 years.

Examples of conduct that may lead to director’s disqualification proceedings include:

  • Continuing to trade at a time when the company was insolvent, to the detriment of creditors
  • Excessive salaries or drawings when the company was insolvent
  • Failing to keep proper accounting records
  • Failure to prepare and file accounts or make returns to Companies House
  • Failure to submit tax returns or pay monies due to HMRC
  • Failing to co-operate with the Liquidator or Administrator of the company

Our specialist Dispute Resolution team have extensive experience of dealing with director disqualification and misfeasance proceedings.

We can defend directors in such proceedings and will negotiate the best possible settlement where disqualification is inevitable.

The Team will advise on the merits of the allegations made against the director, the length of the disqualification period, and following a disqualification we can assist ex-directors applying for leave to act as directors once again.


For more information about Blacks’ services, or for a no obligation discussion, please email or call our Dispute Resolution team today on 0113 207 0000.

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