Company Directors Disqualification Act 1986

Other cases of disqualification E+W+S

10 Participation in wrongful trading. E+W+S

(1) Where the court makes a declaration under section 213 or 214 of the Insolvency Act [F1 1986] that a person is liable to make a contribution to a company’s assets, then, whether or not an application for such an order is made by any person, the court may, if it thinks fit, also make a disqualification order against the person to whom the declaration relates.

(2) The maximum period of disqualification under this section is 15 years.

Textual Amendments

F1 Words in s. 10(1) inserted (1.10.2009) by The Companies Act 2006 (Consequential Amendments, Transitional Provisions and Savings) Order 2009 (S.I. 2009/1941), art. 2(1), Sch. 1 para. 85(6)(a) (with art. 10)

Modifications etc. (not altering text)

C1 Ss. 9, 10 extended (with modifications) by S.I. 1986/2142, art. 6

C2 Ss. 9, 10 extended (with modifications) (1.7.1989) by S.I. 1989/638, regs. 20, 21

C3 S. 10 applied (1.12.1994) by S.I. 1994/2421, art. 16, Sch. 8

11 Undischarged bankrupts. E+W+S

[F2 (1) It is an offence for a person to act as director of a company or directly or indirectly to take part in or be concerned in the promotion, formation or management of a company, without the leave of the court, at a time when—

(a) he is an undischarged bankrupt,

[F3 (aa) a moratorium period under a debt relief order applies in relation to him,] or

(b) a bankruptcy restrictions order [F4 or a debt relief restrictions order] is in force in respect of him.]

(2) “The court” for this purpose is the court by which the person was adjudged bankrupt or, in Scotland, sequestration of his estates was awarded.

(3) In England and Wales, the leave of the court shall not be given unless notice of intention to apply for it has been served on the official receiver; and it is the latter’s duty, if he is of opinion that it is contrary to the public interest that the application should be granted, to attend on the hearing of the application and oppose it.

[F5 (4) In this section “company” includes a company incorporated outside Great Britain that has an established place of business in Great Britain.]

Textual Amendments

F2 S. 11(1) substituted (1.4.2004) by 2002 c. 40, ss. 257(3), 279, Sch. 21 para. 5; S.I. 2003/2093, art. 2(2), Sch. 2 (subject to transitional provisions in arts. 3-8 (as amended by S.I. 2003/2332, art. 2))

F3 S. 11(1)(aa) inserted (24.2.2009 for specified purposes and 6.4.2009 otherwise) by Tribunals, Courts and Enforcement Act 2007 (c. 15), ss. 108(3), 148(2), Sch. 20 para. 16(2); S.I. 2009/382, art. 2

F4 Words in s. 11(1)(b) inserted (24.2.2009 for specified purposes and 6.4.2009 otherwise) by Tribunals, Courts and Enforcement Act 2007 (c. 15), ss. 108(3), 148(2), Sch. 20 para. 16(3); S.I. 2009/382, art. 2

F5 S. 11(4) inserted (1.10.2009) by The Companies Act 2006 (Consequential Amendments, Transitional Provisions and Savings) Order 2009 (S.I. 2009/1941), art. 2(1), Sch. 1 para. 85(7) (with art. 10)

Modifications etc. (not altering text)

C4 Ss. 11, 12(2) extended (with modifications) (1.7.1989) by S.I. 1989/638, regs. 20, 21

12 Failure to pay under county court administration order. E+W+S

(1) The following has effect where a court under section 429 of the Insolvency Act revokes an administration order under Part VI of the M1 County Courts Act 1984.

(2) A person to whom that section applies by virtue of the order under section 429(2)(b) shall not, except with the leave of the court which made the order, act as director or liquidator of, or directly or indirectly take part or be concerned in the promotion, formation or management of, a company.

Modifications etc. (not altering text)

C5 Ss. 11, 12(2) extended (with modifications) (1.7.1989) by S.I. 1989/638, regs. 20, 21

Marginal Citations

M1 1984 c. 28.

[F6 12A Northern Irish disqualification orders. E+W+S

A person subject to a disqualification order under [F7 the Company Directors Disqualification (Northern Ireland) Order 2002]—

(a) shall not be a director of a company, act as receiver of a company’s property or in any way, whether directly or indirectly, be concerned or take part in the promotion, formation or management of a company unless (in each case) he has the leave of the High Court of Northern Ireland, and

(b) shall not act as an insolvency practitioner.]

Textual Amendments

F6 S. 12A inserted (2.4.2001) by 2000 c. 39, s. 7(1); S.I. 2001/766, art. 2(1)(a) (subject to transitional provisions in art. 3)

F7 Words in s. 12A substituted (1.10.2009) by The Companies Act 2006 (Consequential Amendments, Transitional Provisions and Savings) Order 2009) (S.I. 2009/1941), art. 2(1), {Sch. 1 para. 85(8))} (with art. 10)

[F8 12B Northern Irish disqualification undertakings E+W+S

A person subject to a disqualification undertaking under the Company Directors Disqualification (Northern Ireland) Order 2002–

(a) shall not be a director of a company, act as receiver of a company’s property or in any way, whether directly or indirectly, be concerned or take part in the promotion, formation or management of a company unless (in each case) he has the leave of the High Court of Northern Ireland, and

(b) shall not act as an insolvency practitioner.]

Textual Amendments

F8 S. 12B inserted (1.9.2004) by The Insolvency Act 2000 (Company Directors Disqualification Undertakings) Order 2004 (S.I. 2004/1941), art. 2(2) (with art. 1(2))