Company Directors Disqualification Act 1986 (c. 46)

(1) In the circumstances specified below in this Act a court may, and under [ F1 sections 6 [ F2 , 8ZF ] and 9A ] shall, make against a person a disqualification order, that is to say an order that [ F3 for a period specified in the order— (a) he shall not be a director of a company, act as receiver of a company’s property or in any way, whether directly or indirectly, be concerned or take part in the promotion, formation or management of a company unless (in each case) he has the leave of the court, and (b) he shall not act as an insolvency practitioner. ] (2) In each section of this Act which gives to a court power or, as the case may be, imposes on it the duty to make a disqualification order there is specified the maximum (and, in [ F4 sections 6 [ F5 , 8ZA and 8ZF ] ] , the minimum) period of disqualification which may or (as the case may be) must be imposed by means of the order [ F6 and, unless the court otherwise orders, the period of disqualification so imposed shall begin at the end of the period of 21 days beginning with the date of the order ] . (3) Where a disqualification order is made against a person who is already subject to such an order [ F7 or to a disqualification undertaking ] , the periods specified in those orders [ F7 or, as the case may be, in the order and the undertaking ] shall run concurrently. (4) A disqualification order may be made on grounds which are or include matters other than criminal convictions, notwithstanding that the person in respect of whom it is to be made may be criminally liable in respect of those matters. Textual Amendments F1 Words in s. 1(1) substituted (20.6.2003) by 2002 c. 40 , ss. 204(3) , 279 ; S.I. 2003/1397 , art. 2 , Sch. F2 Word in s. 1(1) inserted (22.2.2024) by Finance Act 2024 (c. 3) , Sch. 13 para. 2(2)(a) (with Sch. 13 para. 4(2) ) F3 Words in s. 1(1) substituted (2.4.2001) by 2000 c. 39 , s. 5(1) ; S.I. 2001/766 , art. 2(1)(a) (subject to transitional provisions in art. 3 ) F4 Words in s. 1(2) substituted (26.5.2015 for specified purposes, 1.10.2015 in so far as not already in force) by Small Business, Enterprise and Employment Act 2015 (c. 26) , s. 164(1) , Sch. 7 para. 2 ; S.I. 2015/1329 , reg. 3(c) ; S.I. 2015/1689 , reg. 2(g) F5 Words in s. 1(2) substituted (22.2.2024) by Finance Act 2024 (c. 3) , Sch. 13 para. 2(2)(b) (with Sch. 13 para. 4(2) ) F6 Words in s. 1(2) inserted (2.4.2001) by 2000 c. 39 , s. 5(2) ; S.I. 2001/766 , art. 2(1)(a) (subject to transitional provisions in art. 3 ) F7 Words in s. 1(3) inserted (2.4.2001) by 2000 c. 39 , s. 8 , Sch. 4 Pt. I para. 2 ; S.I. 2001/766 , art. 2(1)(a) (subject to transitional provisions in art. 3 ) Modifications etc. (not altering text) C15 Ss. 1, 2 extended (with modifications) (1.7.1989) by S.I. 1989/638 , regs. 20 , 21 C16 S. 1 applied (with modifications) by S.I. 1994/2421 , art. 16 , Sch. 8 (as amended (E.W.) (8.12.2017) by The Insolvency (Miscellaneous Amendments) Regulations 2017 (S.I. 2017/1119) , reg. 1(1) , Sch. 2 paras. 4 , 8 ) (1) In the circumstances specified in sections [ F9 5A, 7, 8, 8ZC [ F10 , 8ZE, 8ZF and 8ZG ] ] the [ F11 appropriate authority ] may accept a disqualification undertaking, that is to say an undertaking by any person that, for a period specified in the undertaking, the person— (a) will not be a director of a company, act as receiver of a company’s property or in any way, whether directly or indirectly, be concerned or take part in the promotion, formation or management of a company unless (in each case) he has the leave of a court, and (b) will not act as an insolvency practitioner. (2) The maximum period which may be specified in a disqualification undertaking is 15 years; and the minimum period which may be specified in a disqualification undertaking under section 7 [ F12 , 8ZC or 8ZF ] is two years. (3) Where a disqualification undertaking by a person who is already subject to such an undertaking or to a disqualification order is accepted, the periods specified in those undertakings or (as the case may be) the undertaking and the order shall run concurrently. (4) In determining whether to accept a disqualification undertaking by any person, the [ F13 appropriate authority ] may take account of matters other than criminal convictions, notwithstanding that the person may be criminally liable in respect of those matters. ] [ F14 (5) In this section “ the appropriate authority ” means— (a) in relation to an undertaking under section 8ZF or 8ZG, an officer of Revenue and Customs; (b) in any other case, the Secretary of State. ] Textual Amendments F8 S. 1A inserted (2.4.2001) by 2000 c. 39 , s. 6(2) ; S.I. 2001/766 , art. 2(1)(a) (subject to transitional provisions in art. 3 ) F9 Words in s. 1A(1) substituted (26.5.2015 for specified purposes, 1.10.2015 in so far as not already in force) by Small Business, Enterprise and Employment Act 2015 (c. 26) , s. 164(1) , Sch. 7 para. 3(2) ; S.I. 2015/1329 , reg. 3(c) ; S.I. 2015/1689 , reg. 2(g) F10 Words in s. 1A(1) substituted (22.2.2024) by Finance Act 2024 (c. 3) , Sch. 13 para. 2(3)(a)(i) (with Sch. 13 para. 4(2) ) F11 Words in s. 1A(1) substituted (22.2.2024) by Finance Act 2024 (c. 3) , Sch. 13 para. 2(3)(a)(ii) (with Sch. 13 para. 4(2) ) F12 Words in s. 1A(2) substituted (22.2.2024) by Finance Act 2024 (c. 3) , Sch. 13 para. 2(3)(b) (with Sch. 13 para. 4(2) ) F13 Words in s. 1A(4) substituted (22.2.2024) by Finance Act 2024 (c. 3) , Sch. 13 para. 2(3)(c) (with Sch. 13 para. 4(2) ) F14 S. 1A(5) inserted (22.2.2024) by Finance Act 2024 (c. 3) , Sch. 13 para. 2(3)(d) (with Sch. 13 para. 4(2) ) Modifications etc. (not altering text) C17 S. 1A applied (with modifications) by S.I. 1994/2421 , art. 16 , Sch. 8 (as amended (E.W.) (8.12.2017) by The Insolvency (Miscellaneous Amendments) Regulations 2017 (S.I. 2017/1119) , reg. 1(1) , Sch. 2 paras. 4 , 8 )

(1) The court may make a disqualification order against a person where he is convicted of an indictable offence (whether on indictment or summarily) in connection with the promotion, formation, management [ F15 liquidation or striking off ] of a company [ F16 with the receivership of a company’s property or with his being an administrative receiver of a company ] . [ F17 (1A) In subsection (1), “ company ” includes overseas company. ] (2) “The court” for this purpose means— (a) any court having jurisdiction to wind up the company in relation to which the offence was committed, or [ F18 (aa) in relation to an overseas company not falling within paragraph (a), the High Court or, in Scotland, the Court of Session, or ] (b) the court by or before which the person is convicted of the offence, or (c) in the case of a summary conviction in England and Wales, any other magistrates’ court acting [ F19 in the same local justice ] area; M1 and for the purposes of this section the definition of “ indictable offence ” in Schedule 1 to the Interpretation Act 1978 applies for Scotland as it does for England and Wales. (3) The maximum period of disqualification under this section is— (a) where the disqualification order is made by a court of summary jurisdiction, 5 years, and (b) in any other case, 15 years. Textual Amendments F15 Words in s. 2(1) substituted (1.7.1995) by 1994 c. 40 , s. 39 , Sch. 11 para. 6 ; S.I. 1995/1433 , art. 3 F16 Words in s. 2(1) substituted (2.4.2001) by 2000 c. 39 , s. 8 , Sch. 4 Pt. I para. 3 ; S.I. 2001/766 , art. 2(1)(a) (subject to transitional provisions in art. 3 ) F17 S. 2(1A) inserted (26.5.2015 for specified purposes, 1.10.2015 in so far as not already in force) by Small Business, Enterprise and Employment Act 2015 (c. 26) , s. 164(1) , Sch. 7 para. 4(2) ; S.I. 2015/1329 , reg. 3(c) ; S.I. 2015/1689 , reg. 2(g) F18 S. 2(2)(aa) inserted (26.5.2015 for specified purposes, 1.10.2015 in so far as not already in force) by Small Business, Enterprise and Employment Act 2015 (c. 26) , s. 164(1) , Sch. 7 para. 4(3) ; S.I. 2015/1329 , reg. 3(c) ; S.I. 2015/1689 , reg. 2(g) F19 Words in s. 2(2)(c) substituted (1.4.2005) by Courts Act 2003 (c. 39) , ss. 109(1) , 110 , Sch. 8 para. 30(a) ; S.I. 2005/910 , art. 3(y) Modifications etc. (not altering text) C18 Ss. 1, 2 extended (with modifications) (1.7.1989) by S.I. 1989/638 , regs. 20 , 21 Marginal Citations M1 1978 c. 30 .