Director Disqualification Proceedings

A licensed insolvency practitioner (IP) is appointed whenever a company enters liquidation or administration. Acting as liquidator / administrator, the IP must send a report about the directors' conduct to the government agency responsible for investigating and punishing directors deemed unfit to manage a company.

The Insolvency Service may launch an investigation involving present, former, shadow, or de facto directors if the IP's report includes any evidence of improper conduct, mismanagement, or deceit. A director who commits an act of misconduct while in office could face prosecution, or be banned from managing companies for up to 15 years.