F1Persons instructing unfit directors
C18ZAOrder disqualifying person instructing unfit director of insolvent company
1
The court may make a disqualification order against a person (“P”) if, on an application under section 8ZB, it is satisfied—
a
either—
i
that a disqualification order under section 6 has been made against a person who is or has been a director (but not a shadow director) of a company, or
ii
that the Secretary of State has accepted a disqualification undertaking from such a person under section 7(2A), and
b
that P exercised the requisite amount of influence over the person.
That person is referred to in this section as “the main transgressor”.
2
For the purposes of this section, P exercised the requisite amount of influence over the main transgressor if any of the conduct—
a
for which the main transgressor is subject to the order made under section 6, or
b
in relation to which the undertaking was accepted from the main transgressor under section 7(2A),
was the result of the main transgressor acting in accordance with P's directions or instructions.
3
But P does not exercise the requisite amount of influence over the main transgressor by reason only that the main transgressor acts on advice given by P in a professional capacity.
4
Under this section the minimum period of disqualification is 2 years and the maximum period is 15 years.
5
In this section and section 8ZB “the court” has the same meaning as in section 6; and subsection (3B) of section 6 applies in relation to proceedings mentioned in subsection (6) below as it applies in relation to proceedings mentioned in section 6(3B)(a) and (b).
6
The proceedings are proceedings—
a
for or in connection with a disqualification order under this section, or
b
in connection with a disqualification undertaking accepted under section 8ZC.
Ss. 8ZA-8ZE and cross-heading inserted (26.5.2015 for specified purposes, 1.10.2015 in so far as not already in force) by Small Business, Enterprise and Employment Act 2015 (c. 26), ss. 105, 164(1); S.I. 2015/1329, reg. 3(c); S.I. 2015/1689, reg. 2(c) (with Sch. para. 1)