A disqualification order is made by the court under the Company Directors Disqualification Act 1986. The Act applies not only to a person who has been formally appointed as a director but also to those people who have carried out the functions of a director and to shadow directors. The order will specify the period of disqualification. For orders made against an unfit director of an insolvent company, there is a minimum period of 2 years and a maximum of 15 years. The Secretary of State has to decide whether it is in the public interest to seek a disqualification order.
Any application is heard and decided by the court.
The OR will make a report to the court on the conduct of the directors and send a copy to them. The court will then decide whether the conduct makes the directors unfit to act in the management of a company and, if so, for how long they should be disqualified. Disqualification proceedings are taken under civil law, not criminal law. Back to top 4. The OR is required to report any evidence of possible criminal offences which are uncovered while investigating a company's affairs to The Insolvency Service's Headquarters.