Legal Assistance Is Vital For Those Facing Disqualified Directors Ban

A company which looses a director to disqualification can find itself in a difficult situation.

If the case is proven he or she will no longer be able to act as a company director, have any influence over the affairs of the business. Also the former director will not be able to be appoint a 'shadow' to run the company for them. And while they can still remain in business as a sole trader or in a partnership they can longer enjoy the tax breaks and concessions associated with running a limited liability.

It should also not be forgotten that in addition to these handicaps for disqualified company directors there is also the very real prospect of loss of reputation. Those who have been banned from being a director appear on the Disqualified Directors Register. They are forbidden also to become a charity trustee, or work as an insolvency practitioner.

There are fines and imprisonment for those classed as disqualified as company directors who continue their previous role. And those involved in the companies which allow them to contravene any bans will also face action.

Those facing becoming disqualified directors have every right to put up their own defence to prevent the ban being put in force. However, they are best advised to consult with solicitors who specialise in advising on and defending such cases.

Following discussions between the solicitor and client it will be determined whether there is a defence against the Directors Disqualification Order. Any defence is made in court, documented as a 'Summary of Truth' is made under oath. Others may also be asked to speak for the defence and the lawyer will helpful in co-ordinating this.

Sometimes people facing the prospect of being declared disqualified company directors may not have a defence. However, the solicitor may well be able discover there is a case for persuading the court there are mitigating circumstances. While proof of mitigating circumstances will not prevent directors from becoming barred, it may well reduce the period of time that has to be spent as a disqualified director. This is especially important, as, depending on circumstances, bans can last in excess of 10 years.

Those facing the unenviable prospect of becoming disqualified directors should seek legal assistance from specialist solicitors as quickly as possible. If your local solicitors haven't got sufficient expertise in this area of law, there are a number of legal practices who do specialise in providing legal representation for disqualified directors and who can deal with your case via e-mail and phone and sometimes Skype.

by: Tim Bishop

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