ABSTRACT

11.1 Part 40 of the CA 2006 governs the foreign disqualification of company directors. It addresses a gap in the law as it stood prior to 2006. Persons who have been disqualified from being a director, or from holding an equivalent position, or engaging in the management of a company in another State, are currently able to form a company in the United Kingdom, to appoint themselves a director of that company and then operate the company either in the United Kingdom or in the State where they have been disqualified. The provisions of Part 40 of the CA 2006 give the Secretary of State power to close the gap by making regulations to disqualify from being a director of a United Kingdom company, persons who have been disqualified in another State.