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Company Directors Disqualification Act 1986

1986 c. 46 · Enacted 25 July 1986 · Extends to England, Wales and Scotland

Not fully up to date. 4 changes made by later legislation have not yet been written into this text, which is revised to 18 November 2025.

See the changes not yet applied
ProvisionChangeMade by
s. 12applied by 1986 c. 45 s. 429(2) (as substituted)Tribunals, Courts and Enforcement Act 2007 Sch. 16 para. 3(2)
s. 12 titlesubstitutedTribunals, Courts and Enforcement Act 2007 Sch. 16 para. 5(2)
s. 12(1)repealedTribunals, Courts and Enforcement Act 2007 Sch. 16 para. 5(3) Sch. 23 Pt. 5
s. 12(2)words substitutedTribunals, Courts and Enforcement Act 2007 Sch. 16 para. 5(4)

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.

[25th July 1986]

C1C2C3I1C4C5C6C7Be it enacted by the Queen’s most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—C8C9C10C11C12C13C14

Annotations to the whole text

Modifications

C1

Act applied (with modifications) (6.4.2001) by S.I. 2001/1090, reg. 4(2), Sch. 2 Pt. II

Act applied (with modifications) (29.3.2009) by 1986 c. 53, s. 90E (as inserted by S.I. 2009/2142, art. 6)

C2

Act applied (with modifications) (21.2.2009) by Banking Act 2009 (c. 1), ss. 121, 263(1) (with s. 247); S.I. 2009/296, art. 3, Sch. para. 2 (as amended (7.4.2017) by S.I. 2017/400, regs. 1(2), 5(6))

C3

Act applied (with modifications) (21.2.2009) by Banking Act 2009 (c. 1), ss. 155, 263(1) (with s. 247); S.I. 2009/296, art. 3, Sch. para. 3 (as amended (7.4.2017) by S.I. 2017/400, regs. 1(2), 5(11))

C4

Act modified by S.I. 1986/2142, arts. 1(2), 3

Act modified (8.2.2011) by The Investment Bank Special Administration Regulations 2011 (S.I. 2011/245), reg. 25, Sch. 4 para. 3

Act modified (30.6.2011) by The Investment Bank Special Administration (England and Wales) Rules 2011 (S.I. 2011/1301), rule 334

C5

Act modified (8.2.2011) by The Investment Bank Special Administration Regulations 2011 (S.I. 2011/245), reg. 23 (as amended (7.4.2017) by S.I. 2017/400, regs. 1(2), 10(6))

C6

Act applied (in part) by S.I. 1989/638, reg. 20 (as amended (1.10.2009) by The European Economic Interest Regulations 2009 (S.I. 2009/2399), reg. 21 (with reg. 2))

Act applied (1.8.2007) by The European Grouping of Territorial Cooperation Regulations 2007 (S.I. 2007/1949), reg. 9

C7

Act: power to amend conferred (17.2.2009 for specified purposes and 21.2.2009 otherwise) by Banking Act 2009 (c. 1), ss. 158(2)(b), 159(2)(b), 263(1) (with s. 247); S.I. 2009/296, arts. 2, 3, Sch. para. 3

C8

Act excluded (10.1.2015) by The Bank Recovery and Resolution (No. 2) Order 2014 (S.I. 2014/3348), art. 217

C9

Act applied (with modifications) (31.7.2015) by The European Grouping of Territorial Cooperation Regulations 2015 (S.I. 2015/1493), reg. 10 (with reg. 11)

C10

Act modified (12.11.2021) by The Payment and Electronic Money Institution Insolvency (England and Wales) Rules 2021 (S.I. 2021/1178), rules 2, 295

C11

Act modified (S.) (19.12.2022) by The Payment and Electronic Money Institution Insolvency (Scotland) Rules 2022 (S.I. 2022/1239), rules 2, 206

C12

Act: power to apply (with modifications) conferred (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(3), Sch. 11 para. 165; S.I. 2023/779, reg. 4(ddd)(xiv)

C13

Act applied (with modifications) (8.7.2021) by The Payment and Electronic Money Institution Insolvency Regulations 2021 (S.I. 2021/716), reg. 46, Sch. 1 para. 4 (with reg. 5, Sch. 2 paras. 3, 7) (as amended (4.1.2024) by The Payment and Electronic Money Institution Insolvency (Amendment) Regulations 2023 (S.I. 2023/1399), regs. 1(2), 19)

C14

Act (except for ss. 13-15) extended (N.I.) for specified purposes (22.2.2024) by Finance Act 2024 (c. 3), Sch. 13 para. 4(3)

Commencement

I1

Act wholly in force at 29.12.1986 by s. 25 and S.I. 1986/1924

Contents

  1. Preliminary
  2. 1Disqualification orders: general.
  3. 1ADisqualification undertakings: general.
  4. Disqualification for general misconduct in connection with companies
  5. 2Disqualification on conviction of indictable offence.
  6. 3Disqualification for persistent breaches of companies legislation.
  7. 4Disqualification for fraud, etc., in winding up.
  8. 5Disqualification on summary conviction.
  9. 5ADisqualification for certain convictions abroad
  10. Disqualification for unfitness
  11. 6Duty of court to disqualify unfit directors ....
  12. 7Disqualification orders under section 6: applications and acceptance of undertakings
  13. 7AOffice-holder's report on conduct of directors
  14. 8Disqualification of director on finding of unfitness.
  15. Persons instructing unfit directors
  16. 8ZAOrder disqualifying person instructing unfit director ...
  17. 8ZBApplication for order under section 8ZA
  18. 8ZCDisqualification undertaking instead of an order under section 8ZA
  19. 8ZDOrder disqualifying person instructing unfit director: other cases
  20. 8ZEDisqualification undertaking instead of an order under section 8ZD
  21. Disqualification for promoting tax avoidance
  22. 8ZFDisqualification following winding up under s.85 of Finance Act 2022
  23. 8ZGDisqualification on finding of unfitness: promoters of tax avoidance
  24. Further provision about disqualification undertakings
  25. 8AVariation etc. of disqualification undertaking.
  26. 9Matters for determining unfitness of directors. Repealed
  27. Disqualification for competition infringements
  28. 9ACompetition disqualification order
  29. 9BCompetition undertakings
  30. 9CCompetition investigations
  31. 9DCo-ordination
  32. 9EInterpretation
  33. Other cases of disqualification
  34. 10Participation in wrongful trading.
  35. 11Undischarged bankrupts.
  36. 11ADesignated persons under sanctions legislation
  37. 12Failure to pay under county court administration order.
  38. 12ANorthern Irish disqualification orders.
  39. 12BNorthern Irish disqualification undertakings
  40. 12CDetermining unfitness etc: matters to be taken into account
  41. Consequences of contravention
  42. 13Criminal penalties.
  43. 14Offences by body corporate.
  44. 15Personal liability for company’s debts where person acts while disqualified.
  45. Compensation orders and undertakings
  46. 15ACompensation orders and undertakings
  47. 15BAmounts payable under compensation orders and undertakings
  48. 15CVariation and revocation of compensation undertakings
  49. Supplementary provisions
  50. 16Application for disqualification order.
  51. 17Application for leave under an order or undertaking.
  52. 18Register of disqualification orders and undertakings.
  53. 19Special savings from repealed enactments.
  54. Miscellaneous and general
  55. 20Admissibility in evidence of statements.
  56. 20ALegal professional privilege
  57. 21Interaction with Insolvency Act 1986 etc.
  58. 21ABank insolvency
  59. 21BBank administration
  60. 21CBuilding society insolvency and special administration
  61. 22Interpretation.
  62. 22AApplication of Act to building societies.
  63. 22BApplication of Act to incorporated friendly societies.
  64. 22CApplication of Act to NHS foundation trusts
  65. 22DApplication of Act to open-ended investment companies Repealed
  66. 22EApplication of Act to registered societies
  67. 22FApplication of Act to charitable incorporated organisations
  68. 22GApplication of Act to further education bodies
  69. 22HApplication of Act to protected cell companies
  70. 22IPower to amend application of Act in relation to relevant entities
  71. 23Transitional provisions, savings, repeals.
  72. 24Extent.
  73. 25Commencement.
  74. 26Citation.
  75. Schedule 1: Determining unfitness etc: matters to be taken into account
  76. Matters to be taken into account in all cases
  77. 1Paragraph 1
  78. 2Paragraph 2
  79. 3Paragraph 3
  80. 4Paragraph 4
  81. Additional matters to be taken into account where person is or has been a director
  82. 5Paragraph 5
  83. 6Paragraph 6
  84. 7Paragraph 7
  85. Interpretation
  86. 8Paragraph 8
  87. 9Paragraph 9
  88. Schedule 2: Savings from Companies Act 1981 ss. 93, 94, and Insolvency Act 1985 Schedule 9
  89. 1Paragraph 1
  90. 2Paragraph 2
  91. 3Paragraph 3
  92. 4Paragraph 4
  93. 5Paragraph 5
  94. 6Paragraph 6
  95. 7Paragraph 7
  96. 8Paragraph 8
  97. Schedule 3: Transitional Provisions and Savings
  98. 1Paragraph 1
  99. 2Paragraph 2
  100. 3Paragraph 3
  101. 4Paragraph 4
  102. 5Paragraph 5
  103. 6Paragraph 6
  104. Schedule 4Repeals