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Company Directors Disqualification

Under the Company Director Disqualification Act 1986 (CDDA) a person may be disqualified from acting as a director of any limited company for a period of between 2 and 15 years. A Disqualification Order can therefore have a devastating effect on your ability to earn a living and on the reputation of your business. At Lupton Fawcett our specialist team can provide advice to any individuals threatened with or subject to proceedings under the CDDA.

You can be disqualified from being a company director if you don't meet your legal responsibilities and can be investigated and disqualified if your conduct is reported as being unfit. Unfit conduct includes;

• Allowing a company to continue trading when it can't pay its debts

• Using company money or assets for personal benefit

• Not sending accounts and returns to Companies House

• Not keeping proper company accounting records

• Not paying tax owed by the company

Anyone at risk of a disqualification should seek immediate expert advice and our team at Lupton Fawcett can assist you with any investigation, in responding to a notice of intention to seek disqualification and defending any claim for disqualification.


In some cases it may be beneficial and appropriate to offer an Undertaking not to act as a director. Expert advice should be taken before offering or accepting an Undertaking and our specialist team will then negotiate acceptable terms and the period of such an Undertaking.

Consequences of breaching orders and undertakings

Disqualification Orders and Undertakings significantly restrict the roles that you can undertake and carry out within a company. It is paramount that you understand the implications of a Disqualification Order or Undertaking as if you breach either of them you can be imprisoned for up to two years.

Speak to a specialist

Our experienced team can help no matter what situation your business is facing. Contact our Leeds, Yorkshire or Sheffield office today to find out more, or use our contact details below. For immediate assistance please use our 24/7 mobile number 07971 520407.

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