What is the disqualified directors register?

Directors of limited companies are required to not only follow their company’s rules – as set out in its articles of association – but also comply with various other obligations. They have a responsibility, for example, to keep company records and report changes, as well as to file their accounts and their Company Tax Return. They are required to pay Corporation Tax, too. Here, we take a look at what the disqualified directors register is. 

Unfortunately, not all directors comply with these duties. If they are indeed in breach, they may be fined, prosecuted, or subject to disqualification as a company director (“banned”). 

Introducing the disqualified directors register, and why it matters 

If a given individual is disqualified as a director, their name and associated information will be included on the disqualified directors register. 

This register – maintained by Companies House – is a list of all the people who are currently disqualified from acting as company directors, in accordance with the 1986 Company Directors Disqualification Act. 

The disqualified directors register is open to the public for inspection, via the Companies House website. Companies and organisations frequently use it to check whether a prospective director is disqualified.

What details can be found on the disqualified directors register? 

When such parties do check the register, they will be presented with information about directors who are presently disqualified by the courts, The Insolvency Service, and the Competition and Markets Authority. 

The displayed details for each person on the register will include their name, address, date of birth (if available), nationality, and last registered address. 

It will also be stated on the register when the given individual’s disqualification began and ends, as well as how many disqualifications they have had, the grounds on which they were disqualified, and the names of companies relevant to their disqualification. 

The register will confirm, too, whether the listed person has been granted permission by the court to continue acting as a director. 

It is important to note that the disqualified directors register will not show the details of people who were once disqualified as a director, but no longer are. This is because once the disqualification order period comes to an end, the individual’s name and the record of their disqualification will be deleted from the register. 

What actions can lead to a director being disqualified?

Anyone is able to report a company director’s conduct as being “unfit”. 

Examples of “unfit conduct” – in relation to which, a company director can be disqualified – include: 

• Allowing their company to keep on trading when it is unable to pay its debts 
• Failing to maintain proper company accounting records 
• Failing to send accounts and returns to Companies House 
• Failing to pay tax that the company owes 
• Using company money or assets for personal benefit 

How does the disqualification process work? 

If a body such as The Insolvency Service becomes aware of a complaint or a given company is involved in insolvency proceedings, an investigation may begin. In the event of “unfit conduct” being discovered, a director disqualification ban may be handed down. 

If this does come to pass, the director will be banned for as long as 15 years. 

What are the practical effects of a company director being disqualified? 

A ban being imposed on an individual will mean they are unable to serve as a director of any company registered in the UK, or an overseas company that has connections to the UK. Nor will the disqualified person be allowed to involve themselves in the formation, marketing, or operation of a company. 

The disqualification of a director can have a serious effect on their career, not least given how it tarnishes their reputation. Their company’s image may suffer by association, which could lead to a loss of business and investor confidence. 

Ultimately, it is of the very greatest importance for company directors to ensure they are always fulfilling their duties and not engaging in “unfit conduct”. This way, they will be able to ensure they are not risking an appearance on the directors disqualification register in the future. 

With the credit checks that we allow you to undertake for companies here at Creditserve, we can help you conduct business with confidence. To learn more about our services and expertise, please don’t hesitate to contact us.