Are you faced with director disqualification? This can be a stressful and scary time, but thankfully you have the option to contest the disqualification if you want.
The laws have recently changed surrounding director disqualification, and it is important to be aware of these changes if you want to contest your possible disqualification. Here is everything that you need to know about director disqualification.
Could a Director Disqualification Affect You?
In recent years the number of director disqualifications has increased, so directors are more likely to face possible disqualification. This is due to an increased scrutiny from official bodies, and this is very stressful for any director who may be disqualified.
The process can also be fairly drawn out, and this can make the situation feel even more stressful. Losing a job can have a big effect on your financial and emotional state, and it can also make it difficult to find more work in the future.
Thankfully, it is possible for directors to contest the decision so that they can possibly get back their job. This should be done if you believe that you have been wrongly disqualified, but if you know that the disqualification was reasonable, it is likely that this could be a waste of your time and efforts.
The Laws Around Director Disqualification
There are a few different laws surrounding director disqualification, and some of the laws have recently changed. These laws relate to the Company Directors Disqualification Act 1986, and they were first employed in the autumn of 2015. These laws have set new rules surrounding director disqualification, and they seem to lean towards favouring the state over the director. This means that is it now harder to contest a disqualification, but it is certainly not impossible.
This is why it is very important to speak to a lawyer or a solicitor about the situation as soon as possible.
Dealing with Director Disqualification
If you are facing pre-action correspondence surrounding a director disqualification, you will need to act immediately. It is likely that the situation will begin with the Insolvency Service sending you a pre-action letter that will say that the company is planning on commencing with Director Disqualification proceedings. If you have received this letter, the best thing that you can do is speak to lawyers who specialise in director disqualification.
You definitely shouldn’t ignore the letter, as this means that you may miss the short time frame that you have (as a director) to contest the disqualification. You can do this in writing or during an arranged meeting, and you should use this chance to explain your side of the story to the Insolvency Service.
A lawyer or solicitor will be able to help you to present your case in careful way, and they may also encourage you to use various documents or witnesses to back up your case. It is often very useful to have some form of proof to back up your claims, especially as the new laws seem to favour the company over the individual.