Glossary

Directors' disqualification

Directors' disqualification bars a person from running or managing a company, typically for unfit conduct exposed in an insolvency — lasting from two to fifteen years.

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2–15 yrsTypical ban length

Unfit conductThe usual trigger

Definition

Directors' disqualification is an order, under the Company Directors Disqualification Act 1986, preventing an individual from being a director or being concerned in the management of a company for a set period, usually following evidence of unfit conduct.

In plain terms

It's the sanction for directors who behave badly — trading while insolvent, failing to keep records, not paying tax. The ban can run from two to fifteen years.

Why it matters for your company

Most disqualifications flow from an insolvency where the director's conduct is reviewed. Keeping proper books, filing on time and dealing honestly with creditors is the surest protection. See filing obligations.