Disqualified Directors Insights

Disqualified!

As we move into more uncertain times and we are seeing a corresponding increase in the number of insolvency appointments, the issue of when a director banning might impact a person becomes relevant. Set out below is a brief summary of the various circumstances in that a director banning might occur. It's worth understanding when and how it happens.

A Bankruptcy or Personal Insolvency Agreement

An undischarged bankrupt is automatically disqualified from being a director of a Company (s.206B(3)). This disqualification is in place for the period of the bankruptcy, which is usually three years but can be extended in many situations such as a lack of cooperation on behalf of the undischarged bankrupt.