Director disqualification solicitors
Our director disqualification solicitors have a strong track record of defending directors facing disqualification
Facing disqualification as a director?
Have you received a questionnaire or section 16 notice letter from the Insolvency Service?
We have a strong track record in persuading the Insolvency Service to discontinue claims alleging unfit conduct by setting out strategic and robust representations in response to claims by the Insolvency Service for director disqualification on behalf of company directors. If you are facing the prospect from being banned as a company director and require assistance on director investigations and/or director disqualification proceedings in England & Wales and Scotland, our specialist director disqualification solicitors can help you, including discussing your options in order to protect and continue to run your current business.
Disqualification for company directors can last for up to 15 years and can have a devastating impact on a company director’s finances and future employment prospects. With the consequences of director disqualification being so severe, it is vital that you seek specialist expert legal advice on director disqualification promptly if you have been contacted by the Insolvency Service or are under investigation for your conduct under the Company Directors Disqualification Act 1986.
Our aim is to help you protect your livelihood and reputation. Our technical knowledge and extensive expertise means that we can provide a tactical and practical approach catered to the company director’s individual circumstances in response to director disqualification claims.
We will discuss your available options and help you defend your case in response to claims by the Insolvency Service for director disqualification, including the option to negotiate downwards any voluntary undertaking.
We have vast experience in successfully defending claims by the Insolvency Service and avoiding lengthy bans, including allegations by the Insolvency Service surrounding trading to the detriment of HMRC, misuse of bounce back loans, to the most serious and complex claims such as MTIC fraud.
Our director disqualification solicitors are highly experienced in helping company directors to reduce bans or to avoid them altogether. Whether you’re facing a voluntary undertaking or planning to go through the court process, we can help.
Contact us today for a free and confidential consultation where we’ll assess your situation and advise you on your next steps. The earlier you contact us, ideally before any representations are put forward, the better we can help you to achieve a positive outcome.
Schedule my free consultationTestimonials
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I instructed Shevy and Weightmans to represent me and guide me through the claims of Covid BBL misuse raised by the Insolvency Services. Throughout the process, Shevy provided clear, straightforward advice and always explained my options at each stage. She consistently went the extra mile to support me and made sure I understood the situation and the claims in simple, accessible terms.
Company Director
Read our guide to director disqualification
Read our in-depth guide to director disqualification, which covers everything you need to know about the process and potential consequences of director disqualification.
Read the guide to director disqualificationAccolades
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The firm really understands our business so our engagements with the team are seamless. We work with a really super team with excellent experience and different approaches.
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Weightmans understands the potential challenges that arise and explains them in simple terms. They offer solutions that are simple and executable and have very strong knowledge and experience.
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Weightmans do a great job. They look after clients and always deliver. They're a proactive firm with good communication. The whole team is strong.
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Our director disqualification solicitors
What is director disqualification?
Director disqualification is a legal measure under the Company Directors Disqualification Act 1986 that prevents an individual (including a non‑executive, de facto or shadow director) from acting as a director, directly or indirectly, and from being involved in the formation, promotion or management of any UK‑registered company (and overseas companies with UK connections).
What are the consequences of director disqualification?
The consequences of disqualification can extend beyond board roles: a disqualified person may not act as a trustee of a charity, a receiver of company property, an insolvency practitioner, or in school governance. They can still work for a company in a non‑directorial role, operate as a sole trader, be a partner (without involvement in formation, promotion or management), serve as a company secretary (avoiding management duties), and hold shares.
On what grounds can a director be disqualified?
Common grounds for disqualification include unfit conduct (failing the “probity and competence” test), such as:
- misuse of government support schemes (e.g., Bounce Back Loans);
- failing to submit tax returns or pay tax;
- allowing trading while insolvent (wrongful trading);
- fraudulent activities (e.g., misappropriating client or company funds);
- failing to keep proper company records (e.g., statutory books);
- failing to file accounts or confirmation statements on time; and
- breaches of competition law (where the CMA can seek a disqualification order or accept an undertaking).
Other grounds include bankruptcy, acting while disqualified, and appointing a disqualified or otherwise unfit director.
How long does director disqualification last?
The court categorises disqualification periods ranging between 2 to 15 years into three brackets based on seriousness:
- 2 – 5 years: (less serious, often reckless rather than criminal and first‑time);
- 6 – 10 years: (more serious or repeated failures); and
- 11 – 15 years: (most serious/fraudulent offences or breaches of a prior order).
What is the process for disqualifying a director?
The typical sequence for disqualifying a director is:
- Investigation opened: the Insolvency Service opens an investigation and begins to collect evidence, including a request for a director to complete a questionnaire.
- Section 16 letter issued: the director is issued with a Section 16 letter from the Insolvency Service which provides formal notification of intention to seek a disqualification order and, where relevant, intention to seek a compensation order.
- Director’s response: the director may put forward a defence or seek to agree a voluntary undertaking. It is imperative to seek legal advice to ensure robust legal representations are put forward.
- Court proceedings: if the director defends the proceedings, they will need to go to court.
- Disqualification: the judge hands down a judgment and if a director is unsuccessful, it will include a period of the disqualification. The costs of the legal proceedings are usually borne by the disqualified director if unsuccessful with defending. However, in our experience, if the Secretary of State is unsuccessful with their claim, they will be required to pay the director’s legal costs.
How long does it take to disqualify a director?
If proceedings go to court, the process can take up to two years. Cases resolved by negotiation and accepting a voluntary disqualification undertaking usually conclude more quickly (an undertaking can also be accepted during court proceedings).
What happens during the investigation phase?
When a company enters an insolvency process (for example, liquidation or administration), the insolvency practitioner must investigate directors’ conduct (generally over the prior three years) and submit a confidential D Report to the Secretary of State. The Secretary of State may instruct the Insolvency Service to investigate further, including a requirement for the director to complete a questionnaire and subsequently sending a “pre‑Section 16” letter summarising alleged misconduct and inviting further information.
What is a Section 16 letter?
A Section 16 letter is the Insolvency Service’s formal notification (on behalf of the Secretary of State) of the intention to seek a disqualification order. It outlines the allegations and may state an intention to seek a compensation order for losses resulting from some or all alleged misconduct.
What options does a director have after receiving a Section 16 letter?
The director can defend the case or offer a voluntary disqualification undertaking. The director should immediately seek specialist legal advice, including a review of draft evidence and preparing robust representations that may persuade the Insolvency Service to discontinue claims in appropriate cases.
What is a disqualification undertaking?
A disqualification undertaking is a formal, voluntary, and legally binding agreement in which a director accepts the allegations of unfit conduct and agrees to be disqualified for a specified period without the need for court proceedings.
It has the same legal effect as a court‑ordered disqualification, avoids the cost and time of litigation, and records both the agreed misconduct and the length of the disqualification.
Directors should always seek specialist legal advice before accepting an undertaking, as disqualification has far-reaching consequences. In particular, it will of course impact those directors who hold any directorships at Companies House or are involved with an overseas company which has connections to the UK.
What are compensation orders in director disqualification?
Under Section 15A CDDA, the court can order a disqualified director to pay compensation for losses to creditors caused by the director’s misconduct. These orders are sought by (or on behalf of) the Secretary of State and are often pursued alongside a disqualification order or undertaking.
Can a disqualified director get permission to keep acting as a director?
A disqualified director can apply to court for permission to act for a specific company under Section 17 CDDA. They must show a reasonable need to remain involved and that adequate safeguards are in place to protect the public from a recurrence of the misconduct. Timing is important, particularly if offering a voluntary undertaking; the goal is to minimise disruption and, where appropriate, prepare the application swiftly.
What roles can a disqualified director still hold?
A disqualified director may work in a non‑directorial role, operate as a sole trader, be a partner (without involvement in formation, promotion or management of a company), serve as company secretary (avoiding management duties), and hold shares.
