Defending directors and protecting livelihoods.
Specialist disqualification barristers for Company Directors Disqualification Act 1986 proceedings, disqualification undertakings, section 17 permission to act and related insolvency claims. Fixed fees agreed in writing.
What director disqualification means.
A director disqualification proceeding is one of the most serious civil consequences that can follow a company failure. Under the Company Directors Disqualification Act 1986, the Secretary of State for Business, Energy and Industrial Strategy, acting through the Insolvency Service, can ask the court to make a directors disqualification order against an individual who has been a director of a company that has become insolvent or against anyone whose conduct as a director makes them unfit to be involved in the management of a company.
If the court makes the order, the individual becomes one of the disqualified directors and cannot act as a director of a UK company, or directly or indirectly take part in the management of a company, for between two and fifteen years. Breaching the order is a criminal offence and can lead to personal liability for company debts. The same regime also covers bankruptcy restriction orders, which impose similar restrictions on undischarged bankrupts who have been culpable for business failure.
Director disqualification cases rarely arrive on their own. They usually sit alongside a winding up petition, a misfeasance claim, an allegation of wrongful or fraudulent trading, an overdrawn director loan account or a compensation order for misuse of a bounce back loan. That is why most directors disqualification cases need a barrister who understands both the Company Directors Disqualification Act 1986 and the wider insolvency picture. Our insolvency barristers page explains how those cases are usually handled together.
How disqualification barristers defend the case.
Defending directors in director disqualification proceedings is not simply about denying the allegations. It is about understanding what schedule of unfit conduct the Insolvency Service is prepared to prove, what it is not, and how the period of disqualification can be reduced or avoided. The statutory schedule covers failures to deliver returns and accounts, failure to pay Crown debts, trading at the expense of creditors, and a pattern of taking credit that there was no reasonable prospect of repaying.
Disqualification barristers on our panel review the evidence before the Secretary of State issues proceedings. In many cases the right response is to engage early, narrow the admitted facts, and offer a shorter disqualification undertaking rather than fight every allegation at trial. A well timed disqualification undertaking can save a director from the worst schedule and the publicity of a contested hearing. It should never be signed, however, without advice on the collateral consequences for any ongoing winding up petition, employment, professional membership or pending winding up petition defence.
Where the case is defended, counsel draft the evidence, cross examine the Insolvency Service witnesses and argue the law. Directors disqualification cases turn on the facts of cash flow, board decisions and creditor treatment. The barristers we place are used to reading management accounts, bank statements and Companies House records, and to explaining complex company finance to a judge who will decide whether the director is unfit.
Permission to act and mitigation.
Even where disqualification is unavoidable, a director does not have to lose his or her livelihood. An application under section 17 of the Directors Disqualification Act 1986 can give permission to act as a director of a named company or to take part in the management of a company under strict conditions. Those conditions usually include independent monitoring, financial reporting, restrictions on credit and a ban on holding office in any other company.
Permission to act applications are won on preparation. The court needs evidence that the public will be protected, that the applicant is needed in the business, and that there is no realistic risk of a repeat of the conduct that led to the disqualification. A disqualification barrister who has already handled the main proceedings is usually best placed to draft the section 17 application because they know exactly what the court found unfit and how to address it.
Legal costs in directors disqualification cases can escalate quickly if the case is fought on every factual point. That is why we agree fixed fees wherever possible, from the initial conference and written advice through to the final hearing or the negotiation of a disqualification undertaking. For cases linked to wider company failure, our High Court insolvency barrister service may also be relevant.
Why instruct through Clerk&Counsel.
Clerk&Counsel is a clerking agency, not a chambers. We place independent disqualification barristers on instructions from directors, from the solicitors who act for them, and from insolvency practitioners who need a view on the conduct of a director before recommending a claim. Because we are not tied to a single set, we can shortlist by the exact experience needed, from junior counsel for a short hearing to a senior silk for the most serious directors disqualification cases.
Most enquiries are suitable for direct access. That means a director can contact us directly, discuss the case with a barrister who has handled Company Directors Disqualification Act proceedings before, and receive a written fee quote before any work starts. Where the case also requires a solicitor, for example because there are linked civil fraud or insolvency claims, we will say so at the outset and help build the right team.
If you have received a letter from the Insolvency Service, a court claim form or a draft disqualification undertaking, the first step is to send the papers to us with a short chronology. We will come back quickly with counsel options, a fixed fee where the work allows, and a clear view on whether the matter can be handled through direct access or needs a solicitor as well.
Facing director disqualification proceedings?
Send the Insolvency Service letter, claim form or draft undertaking with a brief chronology. We will return counsel options, a fixed fee where possible, and advice on whether direct access or solicitor instructed counsel is the right route.
Common questions.
What are director disqualification proceedings?
Director disqualification proceedings are civil applications brought under the Company Directors Disqualification Act 1986. The Secretary of State, usually through the Insolvency Service, asks the court to make a directors disqualification order preventing an individual from acting as a director of a company, or from being involved in the management of a company, for a period of between two and fifteen years.
Can a disqualified director continue to work?
A disqualified director cannot act as a director, or directly or indirectly take part in the management of a company, without permission from the court. An application under section 17 of the Company Directors Disqualification Act for permission to act can allow a disqualified director to continue in a specific role, usually with strict conditions and supervision.
What is the difference between a disqualification order and a disqualification undertaking?
A disqualification order is made by the court after a contested hearing. A disqualification undertaking is an offer given voluntarily to the Secretary of State for Business, Energy and Industrial Strategy to avoid court proceedings. Both have the same effect of banning an individual from acting as a director, and both require careful advice before acceptance.
Can I instruct a director disqualification barrister without a solicitor?
Yes. Many director disqualification cases are suitable for public access. A direct access disqualification barrister can advise on the evidence, negotiate with the Insolvency Service, represent you in court and, where they hold a litigation extension, conduct the entire defence or permission to act application without a solicitor.
How much does a director disqualification barrister cost?
Initial written advice typically starts from around seven hundred and fifty pounds plus VAT. A one day case management or directions hearing usually starts at around one thousand pounds plus VAT. Contested disqualification trials and section 17 permission to act applications are priced on the papers. Fixed fees are agreed in writing wherever the scope is clear.