Disqualification for unfitness
C2C3C56C1 Duty of court to disqualify unfit directors F9....
1
The court shall make a disqualification order against a person in any case where, on an application under this section F10...—
F11a
the court is satisfied—
i
that the person is or has been a director of a company which has at any time become insolvent (whether while the person was a director or subsequently), or
ii
that the person has been a director of a company which has at any time been dissolved without becoming insolvent (whether while the person was a director or subsequently), and
F11b
the court is satisfied that the person’s conduct as a director of that company (either taken alone or taken together with the person’s conduct as a director of one or more other companies or overseas companies) makes the person unfit to be concerned in the management of a company.
F51A
In this section references to a person's conduct as a director of any company or overseas company include, where that company or overseas company has become insolvent, references to that person's conduct in relation to any matter connected with or arising out of the insolvency.
C42
For the purposes of this section F8... , a company becomes insolvent if—
a
the company goes into liquidation at a time when its assets are insufficient for the payment of its debts and other liabilities and the expenses of the winding up,
F1b
the company enters administration,
c
an administrative receiver of the company is appointed;
F6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F72A
For the purposes of this section, an overseas company becomes insolvent if the company enters into insolvency proceedings of any description (including interim proceedings) in any jurisdiction.
F23
In this section and section 7(2), “the court” means—
a
where the company in question is being or has been wound up by the court, that court,
b
where the company in question is being or has been wound up voluntarily, any court which has or (as the case may be) had jurisdiction to wind it up,
F3c
where neither paragraph (a) nor (b) applies but an administrator or administrative receiver has at any time been appointed in respect of the company in question, any court which has jurisdiction to wind it up,
F12d
where the company in question has been dissolved without becoming insolvent, a court which at the time it was dissolved had jurisdiction to wind it up.
3A
Sections 117 and 120 of the M1Insolvency Act 1986 (jurisdiction) shall apply for the purposes of subsection (3) as if the references in the definitions of “registered office” to the presentation of the petition for winding up were references—
a
in a case within paragraph (b) of that subsection, to the passing of the resolution for voluntary winding up,
F4b
in a case within paragraph (c) of that subsection, to the appointment of the administrator or (as the case may be) administrative receiver.
3B
Nothing in subsection (3) invalidates any proceedings by reason of their being taken in the wrong court; and proceedings—
a
for or in connection with a disqualification order under this section, or
b
in connection with a disqualification undertaking accepted under section 7,
may be retained in the court in which the proceedings were commenced, although it may not be the court in which they ought to have been commenced.
3C
In this section and section 7, “director” includes a shadow director
4
Under this section the minimum period of disqualification is 2 years, and the maximum period is 15 years.