UK Act of Parliament 1986 United Kingdom

Company Directors Disqualification Act 1986

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.

Read the Act on legislation.gov.uk (opens in a new tab)
Status
Amended (in force with amendments)
Penalty ceiling
Imprisonment 2 of 12 obligations carry up to 2 years imprisonment. 1 carries different penalties and 9 have no criminal penalty — flagged in the list below.

Does it bind you?

Business-side roles with duties under this instrument.

Director or Officer5 Any Person4

Plus 3 duties on the regulator, Crown ministers and public bodies — folded into the section list below.

Other Acts binding the same actors

If a role above is yours, these are the other instruments that most often bind it.

Director or Officer — also bound by 482 other Acts
Companies Act 2006 126 duties
Any Person — also bound by 2684 other Acts

What it requires

Sections creating concrete business duties or carrying penalties, grouped as the instrument is structured. Titles link to the source text — blue means you’re leaving for legislation.gov.uk.

s.004 Disqualification for fraud, etc. , in winding up. (opens in a new tab) Regulated
  • Misconduct or fraud during company liquidationDirector or Officer
s.006 Duty of court to disqualify unfit directors .... (opens in a new tab) Regulated
Other duties (1) — Crown / regulator
  • Courts must disqualify unfit directors of insolvent or dissolved companiesTribunal / Court
s.008 Disqualification following winding up under s.85 of Finance Act 2022 Regulated
Other duties (1) — Crown / regulator
  • Courts must disqualify directors of wound-up tax avoidance promotersTribunal / Court
s.009 Competition disqualification order Regulated
  • Avoid competition law breaches to prevent director disqualificationDirector or Officer
s.011 Undischarged bankrupts. (opens in a new tab) Imprisonment
  • Act as a director while bankrupt or under debt restrictionsAny Person
s.011 Designated persons under sanctions legislation Imprisonment
  • Acting as a director while subject to sanctionsDirector or Officer
s.012 Failure to pay under county court administration order. (opens in a new tab) Regulated
  • Do not act as a director if your county court administration order is revokedAny Person
s.012 Northern Irish disqualification orders. Regulated
  • Do not act as a director or manager if disqualified in Northern IrelandDirector or Officer
s.012 Northern Irish disqualification undertakings Regulated
  • Comply with Northern Irish disqualification undertakingsDirector or Officer
s.013 Criminal penalties. (opens in a new tab) Regulated
  • Act as a director while disqualifiedAny Person
s.014 Offences by body corporate. (opens in a new tab) Regulated
  • Company acts in breach of a director disqualification orderAny Person
s.016 Application for disqualification order. (opens in a new tab) Regulated
Other duties (1) — Crown / regulator
  • Notify the subject of a disqualification order applicationCrown / Minister / Government department
50 other provisions — procedural and definitional
s.001 Disqualification orders: general. (opens in a new tab)
s.001 Disqualification undertakings: general.
s.002 Disqualification on conviction of indictable offence. (opens in a new tab)
s.003 Disqualification for persistent breaches of companies legislation. (opens in a new tab)
s.005 Disqualification on summary conviction. (opens in a new tab)
s.005 Disqualification for certain convictions abroad
s.007 Disqualification orders under section 6: applications and acceptance of undertakings (opens in a new tab)
s.007 Office-holder's report on conduct of directors
s.008 Disqualification of director on finding of unfitness. (opens in a new tab)
s.008 Variation etc. of disqualification undertaking.
s.008 Order disqualifying person instructing unfit director ...
s.008 Application for order under section 8ZA
s.008 Disqualification undertaking instead of an order under section 8ZA
s.008 Order disqualifying person instructing unfit director: other cases
s.008 Disqualification undertaking instead of an order under section 8ZD
s.008 Disqualification on finding of unfitness: promoters of tax avoidance
s.009 Matters for determining unfitness of directors. (opens in a new tab)
s.009 Competition undertakings
s.009 Competition investigations
s.009 Co-ordination
s.009 Interpretation
s.010 Participation in wrongful trading. (opens in a new tab)
s.012 Determining unfitness etc : matters to be taken into account
s.015 Personal liability for company’s debts where person acts while disqualified. (opens in a new tab)
s.015 Compensation orders and undertakings
s.015 Amounts payable under compensation orders and undertakings
s.015 Variation and revocation of compensation undertakings
s.017 Application for leave under an order or undertaking. (opens in a new tab)
s.018 Register of disqualification orders and undertakings. (opens in a new tab)
s.019 Special savings from repealed enactments. (opens in a new tab)
s.020 Admissibility in evidence of statements. (opens in a new tab)
s.020 Legal professional privilege
s.021 Interaction with Insolvency Act 1986 etc. (opens in a new tab)
s.021 Bank insolvency
s.021 Bank administration
s.021 Building society insolvency and special administration
s.022 Interpretation. (opens in a new tab)
s.022 Application of Act to building societies.
s.022 Application of Act to incorporated friendly societies.
s.022 Application of Act to NHS foundation trusts
s.022 Application of Act to open-ended investment companies
s.022 Application of Act to registered societies
s.022 Application of Act to charitable incorporated organisations
s.022 Application of Act to further education bodies
s.022 Application of Act to protected cell companies
s.022 Power to amend application of Act in relation to relevant entities
s.023 Transitional provisions, savings, repeals. (opens in a new tab)
s.024 Extent. (opens in a new tab)
s.025 Commencement. (opens in a new tab)
s.026 Citation. (opens in a new tab)
Schedules

Schedules

0 of 27 shown
27 other schedules
s.001 Determining unfitness etc : matters to be taken into account (opens in a new tab)
s.002 Savings from Companies Act 1981 ss. 93, 94, and Insolvency Act 1985 Schedule 9 (opens in a new tab)
s.sch001 The extent to which the person was responsible for the...
s.sch001 Where applicable, the extent to which the person was responsible...
s.sch001 The frequency of conduct of the person which falls within...
s.sch001 The nature and extent of any loss or harm caused,...
s.sch001 Any misfeasance or breach of any fiduciary duty by the...
s.sch001 Any material breach of any legislative or other obligation of...
s.sch001 The frequency of conduct of the director which falls within...
s.sch001 Subsections (1A) to (2A) of section 6 apply for the...
s.sch001 In this Schedule “ director ” includes a shadow director....
s.sch002 Sections 2 and 4(1)(b) do not apply in relation to...
s.sch002 Subject to paragraph 1— (a) section 2 applies in a...
s.sch002 Subject to paragraph 1, section 4 applies in relation to...
s.sch002 The powers of a court under section 5 are not...
s.sch002 For purposes of section 3(1) and section 5, no account...
s.sch002 An order made under section 28 of the Companies Act...
s.sch002 Where— (a) an application is made for a disqualification order...
s.sch002 An application shall not be made under section 8 of...
s.sch003 Transitional Provisions and Savings (opens in a new tab)
s.sch003 In this Schedule, “the former enactments” means so much of...
s.sch003 So far as anything done or treated as done under...
s.sch003 Where any period of time specified in a provision of...
s.sch003 Where in any provision of this Act there is a...
s.sch003 Offences committed before the appointed day under any provision of...
s.sch003 A reference in any enactment, instrument or document (whether express...
s.sch004 Repeals (opens in a new tab)

Help complying

Guvnor’s practical routes through this instrument.

Explore business rescue and insolvency options

Understand your options when your company faces financial difficulty - from rescue procedures to formal insolvency, your duties as a director, and …

Change your business structure

Navigate the process of changing your business's legal structure - from sole trader to limited company, partnership, or LLP

Close your company

Choose the right route to close your limited company - voluntary strike-off, Members' Voluntary Liquidation, or dealing with debts

Address an FCA threshold-conditions concern

What to do when FCA supervision has raised a concern that your firm no longer satisfies the threshold conditions. Covers diagnosing the …

Quick FCA authorisation perimeter check

A 10-minute perimeter check for founders unsure whether their proposition is a regulated activity. Routes you to the perimeter explainer, the appointed …

Check before appointing company directors

Before appointing a director, check they are legally eligible. Disqualified directors, undischarged bankrupts, people under director disqualification sanctions and anyone under 16 …

Understand director disqualification

A disqualification order or undertaking bars you from acting as a company director, or helping to manage any company, for up to …
5 more guides that reference this instrument
Avoid breaking competition law Consequences of carrying on regulated financial business without FCA authorisation Protect creditors as a director of an insolvent company Choose a company rescue or insolvency procedure Understand your duties as a company director

Duty extraction and severity labels are Guvnor’s analysis of the instrument, not the instrument itself. Always verify against the linked source text.