Disqualification for unfitness

Disqualification after investigation of company11

1

If it appears to the Department from investigative material that it is expedient in the public interest that a disqualification order should be made against a person who is, or has been, a director or shadow director of a company, the Department may apply to the High Court for such an order.

2

“Investigative material” means—

a

a report made by inspectors under—

i

Article 430 of the Companies Order;

ii

section 167, 168, 169 or 284 of the Financial Services and Markets Act 2000 (c. 8); or

iii

where the company is an open-ended investment company (within the meaning of that Act) regulations made as a result of section 262(2)(k) of that Act or section 1(2)(k) of the Open-Ended Investment Companies Act (Northern Ireland) 2002; and

b

information or documents obtained under—

i

Article 440 or 441 of the Companies Order;

ii

section 2 of the Criminal Justice Act 1987 (c. 38);

iii

section 28 of the Criminal Law (Consolidation) (Scotland) Act 1995 (c. 39);

iv

section 83 of the Companies Act 1989 (c. 40); or

v

section 165, 171, 172, 173 or 175 of the Financial Services and Markets Act 2000.

3

Where it appears to the Department from such report, information or documents that, in the case of a person who has offered to give the Department a disqualification undertaking—

a

the conduct of the person in relation to a company of which the person is or has been a director or shadow director makes him unfit to be concerned in the management of a company, and

b

it is expedient in the public interest that the Department should accept the undertaking (instead of applying, or proceeding with an application, for a disqualification order),

the Department may accept the undertaking.

4

The High Court may make a disqualification order against a person where, on an application under this Article, it is satisfied that his conduct in relation to the company makes him unfit to be concerned in the management of a company.

5

The maximum period of disqualification under this Article is 15 years.