Businessman banned from acting as director after breaching bankruptcy rules

A businessman has been banned from being a company director for eight years after being found to have acted as a director between July 2013 and July 2015 despite being bankrupt since 2005.

In addition to this disqualification, he was sentenced to 22 months in prison in October 2024 for contempt of court in an unrelated case involving company transfers made in breach of a freezing order.

The Insolvency Service’s view

The Insolvency Service made clear that bankruptcy automatically prevents someone from being a company director. They say the ban is there to protect creditors and the public, and that investigations into misconduct will be pursued thoroughly.

What this means for business owners

This case highlights the importance of understanding the restrictions on who can act as a company director.

It is also worth noting that even if paperwork at Companies House suggests a directorship has ended, what matters in practice is whether someone is still involved in running the business.

Therefore, if you are considering bringing someone on as a director in your company or to run the business, it is important to check their status first.

If you are facing bankruptcy yourself, it is best to seek advice early so that you can avoid potential complications.

If you need help with company secretarial or insolvency services, please give us a call. We would be happy to help you! See: https://www.gov.uk/government/news/former-manchester-businessman-banned-after-ignoring-bankruptcy-restrictions-to-act-as-company-director-for-two-years