COMPANY DIRECTORS DISQUALIFICATION ACT 1986 ss.11 and 15.
NOTES.

  • Company Directors Disqualification Act 1986, s.11 is entitled "Undischarged bankrupts".
  • Company Directors Disqualification Act 1986, s.15 is entitled "Personal liability for company's debts where person acts while disqualified".

    It is a criminal offence for an undischarged bankrupt "to act as director of, or directly or indirectly to take part in or be concerned in the promotion, formation or management of, a company, except with the leave of the court" (Company Directors Disqualification Act 1986, s.11).

    The maximum penalty is imprisonment for not more than two years and a fine (Company Directors Disqualification Act 1986, s.13).

    In addition, the bankrupt and any person involved in the management of the company who, without leave of the court, acts on instructions of the bankrupt will both be jointly and severally personally liable for any debts of the company incurred while the bankrupt was involved (Company Directors Disqualification Act 1986, s.15(1)).

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    updated Oct2002.