Does the body trying to disqualify me have the authority to bring disqualification proceedings?
If you are facing the prospect of being banned as a director it is worth taking the time to consider whether the authority looking to instigate and bring the claim has the power under the Company Directors Disqualification Act 1986.
The power of the prosecuting authority is set out in the Company Directors Disqualification Act 1986. The different circumstances in which a disqualification may be brought about correspond to different provisions under that Act: consequently different authorities are empowered under the various provisions.
Stephen Chinnery and his team of specialist lawyers have years of experience in fighting director bans. Contact us today to discuss your case.
A liquidator has the power to bring an application for a disqualification order under sections 2, 3 or 4 of the CDDA 1986.
The answer is “yes”. A creditor of an insolvent company does have the power to try and disqualify a director where they are alleged to have committed an offence or some other default. However, the Court will need to be satisfied that that person has a sufficient interest in bringing a disqualification application.
The Court may make an order for disqualification of its own initiative where it has made a finding that conduct has amounted to either wrongful or fraudulent trading.
Contact Stephen Chinnery and his team of specialist insolvency dispute lawyers for further advice.
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