Burden of Proof for Disqualification of Directors

on Friday, 23 March 2012. Posted in News, Employment, Corporate

A High Court decision has confirmed that for the purpose of obtaining an order disqualifying a person from acting as a director on the grounds that they are not a fit person to do so, the burden of proof required is the civil burden (balance of probabilities), not the criminal one (beyond a reasonable doubt).
The Secretary of State has the power, under the Directors Disqualification Act 1986, to ban a person from acting as a director of a company for up to 15 years and this power is frequently used when the conduct of a director is sufficiently unsatisfactory. Disqualification proceedings are frequently brought in the wake of company insolvencies.

If you are concerned about the behaviour of fellow directors or that your company may be trading while insolvent, contact us for advice.

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