Clarkslegal LLP - Solicitors in Reading and London

Directors’ Duties

Disqualification

Directors whose conduct is particularly culpable may be subject to disqualification proceedings.  A term of disqualification can be made for between 2 to 15 years.  In assessing unfitness, the Court will consider: 

  • All misconduct, including in the disqualification proceedings themselves
  • It is not necessary for the misconduct to directly lead to the company’s insolvency
  • Conduct as director of other companies
  • Commercial misjudgement in itself does not amount to unfitness
  • Previous good conduct is not a defence, although it may be a mitigating factor
  • Misconduct should not be judged with the benefit of hindsight
  • It may a defence that the director took and acted upon professional advice

We are on hand to give sensible and pragmatic guidance through this difficult process.