ABSTRACT
Sections 1 and 2 of the Company Directors Disqualification Act 1986 apply where a court is dealing with a person who has been convicted of an indictable (including triable either way) offence which is connected with the formation, management, liquidation, receivership or management of a company. The effect of the order is to prevent the offender from being a company director or being involved in the setting up or running of a company. The usual maximum period of disqualification is five years (magistrates’ court) and 15 years (Crown Court). Disqualification is usually appropriate where the offender has been guilty of dishonesty or gross incompetence, so that he would be a danger to the public if he were to be allowed to continue to be involved in the management of companies (per Hoffmann J in Re Dawson Print Group Ltd [1987] BCLC 601).
