During this liquidation, can I act as the director of another company?
You can act as the director of another company unless you are subject to a disqualification order, have given a disqualification undertaking, are an undischarged bankrupt or, after 27 March 2006, are subject to a bankruptcy restrictions order or undertaking.
A disqualified person must obtain the permission of the High Court to act as a director or to be concerned in the promotion, formation or management of a company.
You cannot be involved in another company or business that has or uses a name which is so similar that it suggests that there is an association with the failed company. This restriction lasts for 5 years after the winding up and applies:
- if you were a director or shadow director (a person who gives instructions on which the directors of a company are accustomed to act) of the failed company in the 12 months before the winding-up order
- to any name used by the failed company in that 12 months.
This restriction does not apply if the other company had already been known by that name during the whole of the 12-month period and was not dormant in that time.
If you do not comply with this restriction or act as a director without leave of the Court while an undischarged bankrupt or while disqualified, you may be held personally liable for the debts of the new or successor company. You may also be committing a criminal offence. If you believe that these restrictions may apply to you, you should seek advice on your own position. Less frequently, the company itself, its directors or a shareholder may petition, as (in some circumstances) may an administrative receiver, an administrator, a supervisor of a voluntary arrangement, the Department, the Financial Services Authority, the chief clerk (Crown Court), a clerk of petty sessions, or the Official Receiver. A winding-up petition can still be presented even if a company is already in administrative receivership or voluntary liquidation.
