The dangers of covering for a Disqualified Director
A director of a construction company based in South Devon has been disqualified as a director for 14 years for acting as a director whilst disqualified. Whilst not in fact registered as a director at Companies House, the substance of the director’s role within the company was found to breach the terms of the Order (namely not to promote, manage, or be a director of a limited company). In awarding close to the 15 year maximum disqualification period, it should be noted that the director had 2 previous disqualifications on his record, which was no doubt a significant factor in the Court’s reasoning for the high penalty.
Furthermore, for his part in allowing the disqualified director to act in breach of his Disqualification Order, the company’s registered director was also disqualified for a period of 7 years.
This matter once again serves as a reminder to those who cover for disqualified directors and shows the requirement for self-policing of the disqualification regime.