Directors Duties

A total of 813 directors had Court proceedings issued against them for non-payment of company tax in the year ending 31 March 2010.

This figures compares to 654 cases in the previous year.

Disqualification orders under the Company Directors Disqualification Act 1986 ban individuals from being directors of a limited company or from being involved in the promotion, formation or management of a company for up to 15 years.

Directors who have been disqualified have unlimited liability for the losses of any company that they have been involved with in contravention of the disqualification order and may also be criminally liable.

If you are a director, ask yourself the following questions:-

• What was the last piece of legislation setting out my duties?

• What duties do you owe?

• How could you be held personally accountable to third parties?

Regrettably, as solicitors specialising in director duties, we end up defending those directors who often unwittingly have found themselves the subject of expensive proceedings issued by the Department of Business, Innovation and Skills.

At Summit Law LLP, we like to take a proactive approach so we offer lectures with specialist Counsel in which we explain the main statutory duties.

No appointment should be accepted until you have at least spoken to a specialist lawyer. In the event that you do face disqualification proceedings under the Company Directors Disqualification Act 1986, you should contact Jeremy Boyle who has a wealth of experience in the specialist field.