IVA Glossary
C
Company Directors Disqualification Act (1986)
The company Directors disqualification act of 1986 discusses the rights of directors in companies, more exactly how and when a director should be disqualified from his position held within such a company. The act has many provisions where it is stated when a person may be disqualified from the position of director, among which it is important to mention: disqualification for general misconduct in connection with companies, disqualification for unfitness or for competition infringements. Periods of disqualification for general misconduct run between 5 and 15 years at the most.
There are also other reasons for disqualification, like for example when a person holding the position of director is an un-discharged bankrupt. The law states that a director who directly deals with bankruptcy matters should no more be allowed to hold this position, and mustn't be allowed to have any direct connection with the company's promotion or management aspects.
When a disqualification order is being issued against an individual holding the position of director in a company, that person may not act in contravention of that order. Otherwise, he/she becomes guilty of an offence, and may become liable to imprisonment.
There are also other reasons for disqualification, like for example when a person holding the position of director is an un-discharged bankrupt. The law states that a director who directly deals with bankruptcy matters should no more be allowed to hold this position, and mustn't be allowed to have any direct connection with the company's promotion or management aspects.
When a disqualification order is being issued against an individual holding the position of director in a company, that person may not act in contravention of that order. Otherwise, he/she becomes guilty of an offence, and may become liable to imprisonment.
