A director can be disqualified for a number of reasons, including wrongful trading, fraudulent trading or 'unfit' conduct. Failing to adhere to your duties as a director will result in an investigation and disqualification.

On what grounds can a director be disqualified?

Under the Company Directors Disqualification Act 1986, company directors can be disqualified from acting as a director if they are found guilty of 'unfit conduct', for example, if they: committed fraud. continued to trade when the company was insolvent - or they failed to assist the appointed Insolvency Practitioner.

What is disqualification of a director?

Disqualification of directors is a way of restricting a person from becoming a director or determining the conditions in which he/ she cannot be appointed as a director of a company.