Business Advice For Handling Director Disqualification

Director disqualification is very serious and you need to take a serious approach to this process. A director can be disqualified for a number of reasons including unfit behaviour. If you are facing director disqualification, you need to know what you should do to make this process run smoothly. You might not realise this, but it’s easier to get disqualified than you might think and getting the right business advice is essential.

Do Not Try Dealing With This Yourself

While it is tempting to try dealing with director disqualification on your own, you should hire an expert director disqualification attorney to help you. The initial communication from the Insolvency Service will seem innocuous and you might think that replying will stall the proceedings against you. This is not actually the case and anything you detail in writing to the Insolvency Service will be used against you later in the proceedings.

The Insolvency Service will only drop the claims against the director when there are good and clear reasons to do so. This is something that a lawyer will be able to help you show to the Insolvency Service. When you take early advice from an attorney, you will avoid any problems that could come later in the process.

Do Not Feel Pressured Into A Quick Response

The communication from the Insolvency Service will generally have deadlines set out in them. There is no legal requirement that you meet these deadlines and they are often used to pressure directors into sending hurried responses. These responses will generally be used against you later on which is why you have to carefully consider your response.

Directors are entitled to ask for sufficient time to respond to the director disqualification letter. You should not ignore the letter because you do not have to meet the deadline and it is better to ask for more time than to hurry a response.

Always Access The Relevant Company Documentation

Many directors will respond to the Insolvency Service enquiries based on the recollection they have of the events. This is something you need to avoid and you should always review the relevant company documentation before replying. Directors are entitled to ask for access to relevant documents which should be held by the liquidator of the company concerned.

When you request access to the documents, you will need to inform the Insolvency Service of this. You also need to advise them that the timing of your response will rely on the access to the information.

Understand When Legal Proceedings Must Take Place

A lot of directors do not realise that the Insolvency Service has a limited amount of time between the date of liquidation of the company and their commencement of formal legal proceedings against directors. The Insolvency Service has a window of 2 years from the date of administration to bring these proceedings against the directors. However, if the liquidation took place after October 2015, this has been increased to 3 years.

If the service does not bring legal proceedings within this time period, they cannot start director disqualification proceedings with the approval of the director disqualification court. The Insolvency Service often leaves things to the last minute, but they have to allow you enough time to respond properly to their enquiries.