IVA Glossary
D
Disqualification of directors
A director holding his position within a company can easily be disqualified if he is found out to have conducted the business unethically. What is ethical and what is not for a director is described in the Company Directors Disqualification Act of 1986, which is a very important act for directors in general.
Three of the basic reasons and cases in which a director may be easily disqualified are the following: competition infringement related aspects, unfitness in being in a directorial position, and general misconduct. A director may get disqualified from his position and rejected from holding any administrative, financial or managerial position within a company for up to even 15 years, depending on the seriousness of the problem.
When it is found out that a director has in his records bankruptcy related matters, he can also be easily be disqualified (especially an un-discharged bankrupt). Other reasons for disqualification include the cases when a director does not keep proper accounting records, not paying regularly the taxes, and maintaining trading although the company is seemingly on the verge of insolvency.
If a director receives a disqualifying order, and he does not respect the provisions stated within that order, he may easily become charged with offence, which can mean imprisonment.
Three of the basic reasons and cases in which a director may be easily disqualified are the following: competition infringement related aspects, unfitness in being in a directorial position, and general misconduct. A director may get disqualified from his position and rejected from holding any administrative, financial or managerial position within a company for up to even 15 years, depending on the seriousness of the problem.
When it is found out that a director has in his records bankruptcy related matters, he can also be easily be disqualified (especially an un-discharged bankrupt). Other reasons for disqualification include the cases when a director does not keep proper accounting records, not paying regularly the taxes, and maintaining trading although the company is seemingly on the verge of insolvency.
If a director receives a disqualifying order, and he does not respect the provisions stated within that order, he may easily become charged with offence, which can mean imprisonment.
