Director Disqualification

Directors of insolvent companies are increasingly facing the prospect of being disqualified from being a director of another company.  The length of disqualification can be anywhere from 2 – 15 years depending upon the severity of the allegations made. The consequences of having a disqualification order made against you can be quite debilitating from the point of view of being able to continue trading your business.  Whilst you can operate as a sole trader (without the benefit of the veil of incorporation) this is not always practical not to mention the financial exposure. If you try to circumvent the disqualification order by continuing to operate through a limited company, albeit not acting as a director yourself but operating through an alternative party who acts as a director, then if caught, you may potentially be prosecuted criminally and also expose yourself to personal liability and fines.