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.