Disqualification Process
A director charged with fraud or dishonesty must disclose all directorships held in the past 12 months and any prior disqualification. Courts notify the Companies Registration Office (CRO) of disqualifications, which are recorded in the public register. Courts may opt for restriction instead of disqualification if warranted. If a restricted individual becomes a director of an insolvent company within five years, a liquidator must report to the court, which may impose disqualification.
Disqualification may arise from fraud, breaches of duty, reckless or fraudulent trading, persistent non-compliance, or being disqualified abroad. Courts assess public protection, not punishment, in deciding applications. They may impose disqualification or restriction based on the applicant’s submissions, with creditors and contributors allowed to participate.
Courts may grant relief from disqualification if just and reasonable. The ODCE can accept disqualification undertakings as an alternative to court proceedings, specifying grounds, facts, and duration. Acceptance precludes further action, but undertakings last up to five years and are recorded in the CRO register. Breach of an order or undertaking is a serious offence, with potential personal liability for company debts.
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