Breach of Disqualification from Acting as a Director (Section 13 Company Directors Disqualification Act 1986)

Breach of Disqualification from Acting as a Director is an offence under s.13 Company Directors Disqualification Act 1986. If a person acts in contravention of a disqualification order or disqualification undertaking, or in contravention of s.12(2), 12A or 12B, or is guilty of an offence under s.11 or 11A, he is liable to the penalties in s.13. A disqualification order is an order that for a period specified in it he shall not be a director of a company, act as receiver of a company's property or in any way, whether directly or indirectly, be concerned or take part in the promotion, formation or management of a company unless he has the leave of the court, and shall not act as an insolvency practitioner (s.1(1)). Section 11 makes it an offence for a person to act as director of a company or directly or indirectly to take part in or be concerned in the promotion, formation or management of a company, without the leave of the court, while an undischarged bankrupt or subject to a bankruptcy restrictions order or undertaking, a debt relief restrictions order or undertaking, or a debt relief order moratorium (s.11(1) and (2)). Maximum sentence: on conviction on indictment, imprisonment for not more than 2 years or a fine, or both; on summary conviction, imprisonment for not more than 6 months or a fine not exceeding the statutory maximum, or both (s.13).

In practice

This is an either-way offence: it may be tried at the magistrates' court or the Crown Court. Mode of trial depends on the seriousness and the defendant's election. The suspect must be cautioned in accordance with Code C PACE 1984 before any questions about the offence are put to them. Interviews must be audio-recorded (Code E) or, for indictable offences, may be visually recorded (Code F).