Director's Disqualification
One potential consequence of a director’s involvement with a company which goes into an insolvent liquidation may be proceedings brought by the Insolvency Service (part of the Department of Business Innovation and Skills) under the Company Directors Disqualification Act 1986. The service may seek to obtain a Court Order disqualifying the director from acting as a director for a specified period between 2 and 15 years.
Whilst there is a deliberate policy by Government to try to remove “rogue” directors from operating under the cover of limited liability we are aware that the growing number of such proceedings unfortunately catch directors who bear little blame for the company’s failure.
With our experience of representing directors threatened with such proceedings we can advise on the best response to the Insolvency Service and on their defence against such proceedings. We have successfully persuaded the Insolvency Service not to proceed on many occasions.
If we consider that a defence is unlikely to be successful we can negotiate with the Insolvency Service on the director’s behalf for the minimum level of disqualification which can be given by a voluntary undertaking.
If an individual has already been disqualified or accepted a voluntary undertaking but needs to continue to act as a director of a specific company then we can advise on the merits of an application to Court for permission for the director to continue to act in relation to that single company.
More from the Downs Blog
Caring for your employee’s mental health
The WHO defines good mental health as: “a state of wellbeing in which every individual realises his or her own potential, can cope with the normal stress of life, can work productively and fruitfully and is able to make a contribution to his or her community.”
Working from home - where do you stand?
Under new government guidance, you should work from home if you can effectively do so. However, some employers may ask their employees to return to work whilst restrictions are in place - particularly if it is not reasonable to carry out that work at home. For those who are concerned about health problems, or juggling childcare, where do you stand in the eyes of the law?
What the new lockdown means for businesses, employees and workers
The third lockdown in England legally came into force on 6 January 2021. How long it will last is uncertain. At least until mid-February and possibly until late March. Vaccination provides a route out of the pandemic, but businesses need to survive this final and possibly longest of the lockdowns.
We are open
During these uncertain times, it is good to know you can count on us.
Even after the recent Government announcement of another national lockdown we remain open for business and are here to help you.
Coronavirus Job Retention Scheme Extended Until March 2021
On Thursday 5 November 2020, the Chancellor announced that the furlough scheme is to be extended until the end of March 2021. During this period you will be able to claim up to 80% of an Employees salary up to a cap of £2500.
Coronavirus Update - CJRS Extended
The Chancellor announced over the weekend that the Coronavirus Job Retention Scheme (CJRS) that was due to end on 31st October will be extended until 2nd December. The level of support available under the extended scheme will mirror that of what was available under the CJRS in August, with the Government paying 80% of wages up to a cap of £2,500.
Chancellor announces changes to the Job Support Scheme
The Chancellor announced on Thursday 22 October that the Government contribution to employers’ wage costs under the Job Support Scheme (JSS) will be increased. Employers will be expected to pay 5% of the cost of unworked hours instead of the 33% originally announced.
Coronavirus Update - CJRS Bonus - Are you eligible?
Back in the summer the Chancellor announced that employers could receive a one-off payment of £1,000 for every employee who had previously been furloughed under the Coronavirus Job Retention Scheme provided they remained continuously employed to the end of January 2021. Businesses will be able to claim the Job Retention Bonus from 15 February 2021 and the Government has stated that further guidance will be provided by the end of January 2021.
Family Investment Companies
What is a family investment company (FIC)?
FICs are companies limited by shares (an “Ltd” or “Limited”) often setup by parents or grandparents (“Founders”) to benefit both themselves and their family as shareholders. Their popularity has increased in recent years, being seen as a corporate alternative to the more common discretionary trust.
Coronavirus Update - Jobs Support Scheme announced
With new government guidance on Covid coming into force today and the current furlough scheme coming to an end next month, as expected, the Chancellor has today announced a new scheme to help businesses.
Money Laundering Regulations – Is your business compliant?
You must meet certain day-to-day responsibilities if your business is covered by the Money Laundering Regulations or if you just want to protect your business from such risks and work on a best practice basis. These include carrying out ‘customer due diligence’ measures to check that your customers are who they say they are.
Election round up – the results
We've woken up to the news this morning that, following a public vote in a general election, the Conservative party will be forming a government after winning the biggest majority vote in over 30 years.