Director Disqualification

[paulthemill]

Hi, i need advice on whether or not to accept a 11 yr director disqualification notice. If it goes to court instead then will a judge likely be more lenient. I am 24 yrs old and was added on to a company by my step father who has told the insolvency service that he was in control of all company business and i was purely there in name only. However they will not accept this and want to ban me as i was the director.

[atticus]

11 years is in the top band of severity. The Insolvency Service will have their reasons, which will have been explained in the statements served on you. This material will need to be examined in careful detail.

You cannot possibly expect a sensible response based solely on that short post.

Do you need to be a director of a limited company?

[Missimaxo]

If you choose to defend and lose then you will pay costs which can be expensive. If you undertake there are no costs so something else to consider. The Insolvency Service will still hold you liable as named director as you accept you have legal obligations when you become a director. 11yrs is top bracket so the allegations must be serious.

[Missimaxo]

Also if you need to be a director, even with a ban you could apply under s17 to act as a director. It may not be granted though

[paulthemill]

Thank you. Yes sorry for the short post. There are debts of 106,000 which they have said they will not try to claim (but they reserve the right to should any other evidence of wrong doing arise).
I am currently doing my CII insurance exams and am afraid it will affect my career, is this a possibility?
Is there any chance that they will even reduce the 11 years if my step father accepts responsibility?(he has in all correspondence but tit seems they have not taken it into account as he has not had any letters from them regarding disqualification)

[atticus]

I am currently doing my CII insurance exams and am afraid it will affect my career, is this a possibility?

You should ask the CII.

Is there any chance that they will even reduce the 11 years if my step father accepts responsibility?(he has in all correspondence but tit seems they have not taken it into account as he has not had any letters from them regarding disqualification)

We remain in the dark about the reasons that disqualification action is being taken. Remember that if the Insolvency Service is seeking 11 years disqualification they clearly regard it as a very serious case. You can try to negotiate a reduction. Consider taking legal advice from a specialist solicitor.

[paulthemill]

You should ask the CII.
We remain in the dark about the reasons that disqualification action is being taken. Remember that if the Insolvency Service is seeking 11 years disqualification they clearly regard it as a very serious case. You can try to negotiate a reduction. Consider taking legal advice from a specialist solicitor.

Thank you, any advice on finding a good solicitor?

[atticus]

Contact larger firms in your area. Ask if they have any corporate insolvency lawyers who deal with director disqualification cases.

[PallasAthena]

I am currently doing my CII insurance exams and am afraid it will affect my career, is this a possibility?

Whether it will affect your career I can't say but it could certainly affect your eligibility to be a CII member and to sit CII exams (and I say this as a Fellow of the CII myself). You must contact them and disclose your proposed disqualification. They consider each case individually so I couldn't predict what their response to you will be.

https://www.cii.co.uk/membership/joi...n-information/

Note that on that CII page it says that members must notify the CII "as soon as possible" if they are "under investigation by ... any regulatory authority". So the sooner you tell them the better.

You must also notify this to your employer because insurance is a regulated financial industry so you have a duty to disclose this.

I am afraid you are learning the hard way that 'I was a director in name only and someone else was really running the company' cuts no ice in company law or with the insolvency service. If you are a director you assume legal obligations, as I'm sure you are now painfully aware.

Telling the insolvency service that someone else was responsible could make things worse for you, not better, implying as it does that you had not bothered to find out your legal responsibilities as a director. My advice to you is to discuss nothing with them until you have consulted a solicitor specialising in this area.

[atticus]

PallasAthena makes some very good points.