OFT to Take a Tougher Stance with Directors

As part of its efforts to ensure that there are effective deterrent measures to prevent anti-competitive behaviour, the OFT has published its revised guidance on Competition Disqualification Orders (CDOs) in competition cases (the Revised Guidance). This guidance is likely to mean that the OFT will apply for more CDOs, and that directors who were not directly involved in, or even aware of, an infringement may face disqualification.

The Company Directors Disqualification Act provides that, where a company breaches UK or EU competition law, the OFT or sectoral regulators may apply to the court for a CDO. Under such an order, a director can be disqualified from acting as a director for up to 15 years if the court deems them unfit to be involved in the management of a company. A director includes any person occupying the position of director regardless of his or her title. Members of limited liability partnerships are also covered.