OFT Signals Tougher Stance on Director Disqualification Orders

Following a consultation process, the Office of Fair Trading ("OFT") has published new guidance setting out its revised approach to the use of director disqualification orders in competition cases ("CDOs").  With a view to increasing the incentives on company directors to take compliance seriously, the OFT warns that the new guidance should be taken as a clear message that the OFT will be actively seeking the disqualification of directors in appropriate cases. The prospect of being disqualified as a director is seen by the OFT as one of the most powerful deterrents to anti-competitive behaviour regardless of the size of the company.

Under the Company Directors Disqualification Act a director can be disqualified from acting as a director for up to 15 years if their company is involved in a breach of competition law and the court considers they are unfit to be concerned in the management of a company as a result.  Directors for this purpose include shadow directors and