Section 11 of the Company Director Disqualification Act 1986

This page provides an overview summary of section 11 of the Company Director Disqualification Act 1986. If you have any specific queries, you should contact one of our specialist director disqualification solicitors today for specific advice by calling 020 7467 3980.

This provision makes it an offence for a person to act as a director of a company or to directly or indirectly take part in or be concerned in the promotion, formation or management of a company if any of the following apply:

He is an undischarged bankrupt

This means that a bankrupt cannot be a director of a company or take part in the promotion, formation or management of a company either directly or indirectly.

A bankruptcy restrictions order or undertaking is in force

A bankruptcy restrictions order or undertaking extends the period of restrictions imposed on bankrupts where their conduct is deemed irresponsible or reckless.

These restrictions are likely to be very similar to those that would apply before discharge of a bankrupt, except they will continue to apply after a bankrupt has been discharged. A common restriction is likely to include prevention from acting as a director of a company or being concerned in its promotion, formation or management.

A debt relief restrictions order or undertaking is in force

A debt relief order is an alternative insolvency procedure to bankruptcy for individuals. It is available for debtors with limited assets and minimal income beyond their reasonable needs. It serves to prevent creditors from taking steps to enforce their debts against a debtor for a period of one year, unless they have the court’s permission.

It should be noted that a company under this section includes a company incorporated outside Great Britain that has an established place of business in Great Britain.

It is possible to make an application to court for the court’s permission to act as a director or be concerned in the promotion, formation or management of a company if any of the above apply.

However, any such application may be opposed by the official receiver who has a duty to do so if he considers that granting permission would be contrary to the public interest. Each application turns on its own facts and you should seek advice from our specialist director disqualification team if you have any queries in relation to the above.

Contact our directors disqualification lawyers

If you've received a letter from the insolvency service in relation to director disqualification and are in need of specialist legal advice, please do get in touch with our commercial lawyers today. We are leaders in the field and backed with many years experience in helping directors through the process. Simply call our experienced team today on 020 7467 3980 or complete the online enquiry form.