ABSTRACT

This chapter introduces the different forms of company director's disqualification. It presents a brief overview of the historical development of the law pertaining to the disqualification of directors under English law. The chapter then outlines the grounds for automatic disqualification, followed by the grounds for disqualification on application. It also presents an overview of the impact of the Small Business, Enterprise and Employment Act 2015, United Kingdom (SBEEA 2015) on the disqualification of directors under English law. The chapter analyses some illustrative cases concerning both automatic disqualification and disqualification on application. Three different forms of directors' disqualification can be distinguished: automatic disqualification, disqualification by court order and disqualification undertakings. The most widely used ground for disqualifying directors, however, is 'unfitness', which, if the conditions are met, leads to a mandatory disqualification. The distinction between discretionary disqualification and mandatory disqualification makes the system even more complex.