Director Disqualification Lawyers in Norwich
If a company goes into administration or liquidation, the administrator or liquidator will need to submit a confidential report to the Insolvency Service with details about the director’s conduct.
If the Insolvency Service deems it necessary, this report may lead to an investigation into the director’s conduct
If there are issues found with the director’s conduct, the insolvency service may decide to disqualify them from being a director or from involvement in the management of the company or LLP.
Disqualification can range from between 2 to 15 years, depending on the seriousness of the alleged conduct. The average period is between 5 and 6 years.
If you are facing disqualification as the director of a company that is in administration or liquidation, our lawyers at Isadore Goldman can assist you.
Our team has decades of collective experience and includes a formal panel member of the Government’s Insolvency Service who investigates and brings disqualification proceedings.
We have a specialist knowledge of the director disqualification process and the Insolvency Service.
We offer a full range of related services, including:
- The Investigation Stage
- The Decision to Disqualify
- Director Disqualification Undertakings
- Director Disqualification Process - Compensation Orders
- Director Disqualification Process - Permission to Act
- Director Disqualification Process - Contesting Proceedings
- Effect of Disqualification
If you have been contacted in relation to an investigation into your conduct as a director or are facing the threat of director disqualification proceedings, please get in touch with our director disqualification lawyers in Norwich.
For immediate, expert advice on the disqualification of directors, you can contact your local Isadore Goldman office in Norwich or email info@isadoregoldman.com.
The Investigation Stage
Under the Company Director Disqualification Act 1986, the Government has the ability to disqualify directors and managers of companies where it is in the public interest to do so.
If a director is suspected of malpractice, the Insolvency Service will hold an investigation and gather information from the directors and the Insolvency Practitioner’s files.
In some cases, the investigation will be closed and in others, the Insolvency Service may make the decision to disqualify the director.
It can be difficult to get the Insolvency Service to change this decision once it has been made, so it is advisable to seek legal advice at the earliest opportunity if you believe an investigation may be opened, or you are already subject to an investigation.
Our director disqualification lawyers in Norwich have extensive experience assisting directors with investigations and have a track record of identifying and providing the Insolvency Service with relevant information, leading to investigations being closed.
The Decision to Disqualify
The Insolvency Service will issue a Section 16 Letter to notify directors of their decision to disqualify. The letter will include the allegations of unfit conduct and set out a disqualification period ranging from 2 to 15 years based on seriousness.
Directors can either give a disqualification undertaking or face court proceedings for a disqualification order. The letter also indicates if the Insolvency Service will seek a compensation order.
Disqualification periods vary from 2-5 years for less serious conduct, 6-10 years for more serious issues, and 11-15 years for the gravest offences, such as dishonesty or breaching a prior disqualification.
Director Disqualification Undertakings
Giving disqualification undertakings means that you are accepting the Insolvency Service’s decision to disqualify rather than requiring the Insolvency Service to prove their case in court to get a disqualification order.
Generally, directors who give undertaking do so because they believe that if the case goes to court, they will be disqualified anyway.
There are also advantages to giving undertakings, as the Insolvency will generally agree to a shorter period of disqualification, and the director will not have to pay the cost of court proceedings.
It is advisable to seek legal advice whether you decide to give undertaking or not, as the help of a specialist lawyer can help you minimise the disqualification period and review the allegations of misconduct that you will need to admit or not contest.
Director Disqualification Process - Compensation Orders
Since October 2015, the Government can seek financial compensation from directors who admit unfit conduct.
However, the Insolvency Service does not always pursue compensation orders because directors are less likely to give disqualification undertakings if they will face compensation claims.
If you receive a compensation order demand from the Insolvency service, it is crucial to seek legal advice at the earliest opportunity to determine what the best course of action is and protect your long-term interests.
Director Disqualification Process - Permission to Act
When negotiating the terms of a disqualification undertaking or after one is given, it is possible to apply to the court for permission to continue to act as a director or manager of a specific company.
The main consideration is whether the company needs that person to be a director, and what the risks would be. This will depend on the company’s business, who else is involved and the role that the director will have.
Our director disqualification lawyers in Norwich can support you with making an application for permission to act, including gathering the relevant information about the company and your role within it, to support your case.
Director Disqualification Process - Contesting Proceedings
Choosing to contest proceedings can be the most expensive option for a director. However, in some cases, it is necessary if you don’t agree with the outcome of the Insolvency Service’s investigation.
Typically, a director may choose to contest proceedings in cases where they don’t believe they should be disqualified, where they deny some of the serious allegations of unfit conduct or where they wish to challenge the proposed length of disqualification.
The director can choose to offer a disqualification undertaking at any point before or during the trial.
If the Insolvency Service obtains a disqualification order at trial, the director will usually be required to cover the Insolvency Service's costs. However, if the Insolvency Service withdraws the proceedings or loses at trial, it may be responsible for covering the director's costs.
Effect of Disqualification
Disqualification bars a director from being involved in the management of a company, or LLP, and this is recorded on the public register of disqualified directors.
Violating the disqualification is a criminal offence and can make the director personally liable for the company's or LLP's debts. Anyone acting on the instructions of a disqualified director can also be personally liable and commit an offence.
The restrictions involved in disqualification can have far-reaching implications both during and after the disqualification period.
Our director disqualification lawyers in Norwich can assist with ensuring you understand and comply with the restrictions that have been placed on you and can help with the after-effects on your career once the restrictions are over.
Contact our lawyers for help with director disqualification in Norwich
For clear and practical advice about dealing with director disqualification, please speak to our expert team today. You can get in touch at your local office in Norwich or email info@isadoregoldman.com.