If you’re in a company as a director and suddenly find yourself facing the chop in the form of a disqualification, then it’s important to know why and how this has come about. Understanding what a disqualification entails and how it’s come about will be a good thing to know in order to help yourself in a scenario where you’ve been unfairly treated. There are many outcomes that can come from being disqualified and it’s usually due to acting improperly where you could even be subject to penalties and fines. Not only that, but serious allegations could see your reputation being tarnished and in severe cases, imprisonment. So what can you do if you’re facing disqualification as a director?
*This is a collaborative post. Image Source
*This is a collaborative post. What does ‘unfit conduct‘ mean?
Unfit conduct can be a number of things. It could be a failure to keep the right accounting records to failing to pay taxes. Using company funds for your own benefit and any other fraudulent activity is also classed as unfit conduct. If there have been allegations against you that are in relation to others, then this could also be a reason.
If it’s within the public’s interest to take matters further and enough evidence is provided, then the disqualification process will begin.
What happens when it goes to court
Companies House, the insolvency service, or another party will be in touch with you, to notify their intention to begin court proceedings on the grounds of whatever unfit conduct has been found and proven. If you are in disagreement with the evidence, then this is something you’re entitled to argue when in court. The two other alternatives would be to wait for a disqualification order from the court or agree to the undertaking of disqualification, in which the court proceedings will cease there and then.
if you’re disqualified, then this can last for up to fifteen years and could be delivered in hand with a prison sentence if you’re not careful.
What does disqualification mean to your career?
When you get disqualified as a director, there are a number of things you can no longer do during the time period stated. These are being a director of any other company in the UK. You can’t be involved in the formation or running of another company. You’re not able to instruct a third company to manage the company under your direction and neither can you act as a company director which involves hiring staff or making executive decisions.
Even though you can still work as an employee for the same company, there is a minefield to navigate in how you represent yourself and the roles you have within the company.
There can be a lot of difficulties when it comes to being disqualified and if that’s the case for you, then it’s important you seek legal representation immediately with someone like Richardson Lissack. Having the right legal aid on your side can be important in order to help fight your case should you have one at being wrongfully disqualified. Or alternatively, they’ll provide the assistance and guidance needed in order to help reduce the impact and outcomes that could come from disqualification.
Being disqualified becomes a very public matter and as such it’s one that you want to avoid at all costs. Making sure you abide by the rules and conduct your directorship in the right way, will help you avoid getting into dire situations such as this. And in the case that you need help, legal representation when facing disqualification as a director can be good to do straight away.
Do you know someone who got disqualified from their job? Let me know in the comments below.
*Disclaimer – This is a collaborative post with Richardson Lissack. All words are my own.
