Company Directors Disqualification Act 1986
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| Long title | An Act to consolidate certain enactments relating to the disqualification of persons from being directors of companies, and from being otherwise concerned with a company’s affairs. |
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| Citation | 1986 c. 46 |
| Territorial extent | England and Wales; Scotland |
| Dates | |
| Royal assent | 1986-07-25 |
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Status: Unknown
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| Text of statute as originally enacted | |
| Revised text of statute as amended | |
The Company Directors Disqualification Act 1986 (1986 c. 46) forms part of UK company law and sets out the procedures for company directors to be disqualified in certain cases of misconduct.
Lord Millett, in the opinion he gave in Official Receiver v Wadge Rapps & Hunt [2003] UKHL 49 (31 July 2003), summarized the history of disqualification orders in British company law, noting that they were originally created under s. 75 of the Companies Act 1928 (subsequently consolidated as s. 275 of the Companies Act 1929), which was enacted on the recommendation of the Report of the Company Law Amendment Committee (1925-1926) under the chairmanship of Mr Wilfred Greene KC (Cmd 2657). It gave the official receiver, the liquidator or any creditor or contributary the ability to apply to the court having jurisdiction to wind up the company, for an order to disqualify a director from being concerned in the management of a company for a period up to five years. Such order was up to the discretion of the court.
The scope of that provision was subsequently expanded as follows:
The CDDA consolidated the law relating to disqualification orders and introduced the concept of mandatory disqualification, following up on Sir Kenneth Cork's recommendations in the Insolvency Law and Practice, Report of the Review Committee (1982) (Cmnd 8558). That report recommended that application for a mandatory order should be made by the liquidator or, with the leave of the court, by a creditor. This was not acceptable to Parliament, which understandably considered that greater safeguards are necessary in the case of a mandatory order than are required where the court retains a discretion to decline to make an order.
A court may, and under section 6 shall, make against a person a disqualification order, for a period specified in the order, providing that:
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