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