Changes to rules about director disqualification
16 September 2014
The Department for Business, Innovation & Skills (BIS) have published a document clarifying how the rules for disqualification of company directors will change as a result of the Small Business, Enterprise and Employment Bill currently progressing through Parliament.
The BIS document explains that, among other changes, the new legislation
· provides new grounds for disqualification, including for convictions of certain offences overseas and instructing an unfit director
· provides for compensation to be sought in certain circumstances from disqualified directors
· amends the factors that must be taken into account when determining whether a person is unfit to act as a director
· extends the period for applying for a disqualification order after a corporate insolvency from 2 to 3 years