Will I be disqualified as a director?
You will not become disqualified just because your company is insolvent. Disqualification proceedings are only brought if warranted by the director’s conduct. You will only be disqualified if you do not meet your legal responsibilities and have demonstrated unfit conduct such as:
- allowing a company to continue trading when it can’t pay its debts
- not keeping proper company accounting records
- not sending accounts and returns to Companies House
- not paying tax owed by the company
- using company money or assets for personal benefit
Less than 10% of directors of insolvent companies are disqualified. Should you be disqualified the minimum disqualification period is 2 years and the maximum is 15 years, a disqualification prevents an individual from being a director of a company or being concerned in or taking part in the promotion, formation or management of a company.