Source: http://www.legislation.gov.uk/nisi/2002/3150/part/3
Timestamp: 2018-11-14 21:04:57
Document Index: 373682366

Matched Legal Cases: ['art. 9', 'Art. 9', 'art. 9', 'Art. 9', 'art. 2', 'art. 9', 'Art. 9', 'Art. 9', 'Art. 9', 'Art. 10', 'art. 10', 'Art. 10', 'Art. 10', 'Art. 10', 'Art. 10', 'Art. 11', 'art. 11', 'Art. 11', 'art. 11', 'art. 11', 'art. 11', 'Art. 11', 'Art. 11']

The Company Directors Disqualification (Northern Ireland) Order 2002
2002 No. 3150 (N.I. 4)
Disqualification for unfitness
Correction Slip - 27/11/2008
There are currently no known outstanding effects for the The Company Directors Disqualification (Northern Ireland) Order 2002, Disqualification for unfitness.
Disqualification for unfitnessN.I.
Duty of High Court to disqualify unfit directors of insolvent companiesN.I.
9.—(1) The High Court shall make a disqualification order against a person in any case where, on an application under this Article, it is satisfied—
(a)that he is or has been a director of a company which has at any time become insolvent (whether while he was a director or subsequently), and
(b)that his conduct as a director of that company (either taken alone or taken together with his conduct as a director of [F1one or more other companies or overseas companies] ) makes him unfit to be concerned in the management of a company.
[F2(1A) In this Article references to a person's conduct as a director of any company or overseas company include, where that company or overseas company has become insolvent, references to that person's conduct in relation to any matter connected with or arising out of the insolvency.]
(2) For the purposes of this Article F3..., a company becomes insolvent if—
(a)the company goes into liquidation at a time when its assets are insufficient for the payment of its debts and other liabilities and the expenses of the winding up,
[F4(b)the company enters administration, or]
(c)an administrative receiver of the company is appointed;
[F6(2A) For the purposes of this Article, an overseas company becomes insolvent if the company enters into insolvency proceedings of any description (including interim proceedings) in any jurisdiction.
(2B) In this Article and Article 10, “director” includes a shadow director.]
(3) Under this Article the minimum period of disqualification is 2 years, and the maximum period is 15 years.
F1Words in art. 9(1)(b) substituted (1.10.2015) by Small Business, Enterprise and Employment Act 2015 (c. 26), s. 164(1), Sch. 8 para. 3(2)(a); S.I. 2015/1689, reg. 2(h) (with Sch. paras. 5-8)
F2Art. 9(1A) inserted (1.10.2015) by Small Business, Enterprise and Employment Act 2015 (c. 26), s. 164(1), Sch. 8 para. 3(2)(b); S.I. 2015/1689, reg. 2(h) (with Sch. paras. 5-8)
F3Words in art. 9(2) omitted (1.10.2015) by virtue of Small Business, Enterprise and Employment Act 2015 (c. 26), s. 164(1), Sch. 8 para. 9(8); S.I. 2015/1689, reg. 2(h)
F4Art. 9(2)(b) substituted (27.3.2006) by Insolvency (Northern Ireland) Order 2005 (S.I. 2005/1455 (N.I. 10)), arts. 1(3), 3(3), Sch. 2 para. 63; S.R. 2006/21, art. 2 (subject to S.R. 2006/22, arts. 2-7)
F5Words in art. 9(2) omitted (1.10.2015) by virtue of Small Business, Enterprise and Employment Act 2015 (c. 26), s. 164(1), Sch. 8 para. 3(2)(c); S.I. 2015/1689, reg. 2(h) (with Sch. paras. 5-8)
F6Art. 9(2A)(2B) inserted (1.10.2015) by Small Business, Enterprise and Employment Act 2015 (c. 26), s. 164(1), Sch. 8 para. 3(2)(d); S.I. 2015/1689, reg. 2(h) (with Sch. paras. 5-8)
C1Art. 9 applied by S.I. 1989/638, reg. 20(2) (as inserted (1.10.2009) by European Economic Interest Grouping (Amendment) Regulations 2009 (S.I. 2009/2399)), {reg. 21(4)} (with reg. 2))
C2Art. 9(2) applied (1.10.2015) by Small Business, Enterprise and Employment Act 2015 (c. 26), s. 164(1), Sch. 8 para. 4(3); S.I. 2015/1689, reg. 2(h)
[F7Disqualification orders under Article 9: applications and acceptance of undertakings]N.I.
10.—(1) If it appears to the Department that it is expedient in the public interest that a disqualification order under Article 9 should be made against any person, an application for the making of such an order against that person may be made—
(a)by the Department, or
(b)if the Department so directs in the case of a person who is or has been a director of a company which is being, or has been, wound up by the High Court, by the official receiver.
(2) Except with the leave of the High Court, an application for the making under Article 9 of a disqualification order against any person shall not be made after the expiration of [F83 years] from the day on which the company of which that person is or has been a director became insolvent.
(3) If it appears to the Department that the conditions mentioned in Article 9(1) are satisfied as respects any person who has offered to give the Department a disqualification undertaking, the Department may accept the undertaking if it appears to the Department that it is expedient in the public interest that the Department should do so (instead of applying, or proceeding with an application, for a disqualification order).
F9(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(5) The Department or the official receiver may require the liquidator, administrator or administrative receiver of a company, or the former liquidator, administrator or administrative receiver of a company—
(a)to furnish the Department or, as the case may be, the official receiver with such information with respect to any person's conduct as a director of the company, and
(b)to produce and permit inspection of such books, papers and other records relevant to that person's conduct as such a director,
as the Department or the official receiver may reasonably require for the purpose of determining whether to exercise, or of exercising, any function under this Article.
[F10(6) Paragraphs (1A) and (2) of Article 9 apply for the purposes of this Article as they apply for the purposes of that Article.]
F7Art. 10 heading substituted (6.4.2016) by Small Business, Enterprise and Employment Act 2015 (c. 26), s. 164(1), Sch. 8 para. 5(4); S.I. 2016/321, reg. 3(c) (with Sch. paras. 3, 4)
F8Words in art. 10(2) substituted (1.10.2015) by Small Business, Enterprise and Employment Act 2015 (c. 26), s. 164(1), Sch. 8 para. 4(1) (with Sch. 8 para. 4(2)); S.I. 2015/1689, reg. 2(h)
F9Art. 10(4) omitted (6.4.2016) by virtue of Small Business, Enterprise and Employment Act 2015 (c. 26), s. 164(1), Sch. 8 para. 5(3); S.I. 2016/321, reg. 3(c) (with Sch. paras. 3, 4)
F10Art. 10(6) inserted (1.10.2015) by Small Business, Enterprise and Employment Act 2015 (c. 26), s. 164(1), Sch. 8 para. 9(9); S.I. 2015/1689, reg. 2(h)
C3Art. 10 applied by S.I. 1989/638, reg. 20(2) (as inserted (1.10.2009) by European Economic Interest Grouping (Amendment) Regulations 2009 (S.I. 2009/2399)), {reg. 21(4)} (with reg. 2))
[F11Office-holder's report on conduct of directorsN.I.
10A—(1) The office-holder in respect of a company which is insolvent must prepare a report (a “conduct report”) about the conduct of each person who was a director of the company—
(a)on the insolvency date, or
(b)at any time during the period of 3 years ending with that date.
(2) For the purposes of this Article a company is insolvent if—
(a)the company is in liquidation and at the time it went into liquidation its assets were insufficient for the payment of its debts and other liabilities and the expenses of the winding up,
(b)the company has entered administration, or
(c)an administrative receiver of the company has been appointed;
and paragraph (1A) of Article 9 applies for the purposes of this Article as it applies for the purposes of that Article.
(3) A conduct report must, in relation to each person, describe any conduct of the person which may assist the Department in deciding whether to exercise the power under Article 10(1) or (3) in relation to that person.
(4) The office-holder must send the conduct report to the Department before the end of—
(a)the period of 3 months beginning with the insolvency date, or
(b)such other longer period as the Department considers appropriate in the particular circumstances.
(5) If new information comes to the attention of an office-holder, the office-holder must send that information to the Department as soon as reasonably practicable.
(6) “New information” is information which an office-holder considers should have been included in a conduct report prepared in relation to the company, or would have been so included had it been available before the report was sent.
(7) If there is more than one office-holder in respect of a company at any particular time (because the company is insolvent by virtue of falling within more than one sub-paragraph of paragraph (2) at that time), paragraph (1) applies only to the first of the office-holders to be appointed.
(8) In the case of a company which is at different times insolvent by virtue of falling within one or more different sub-paragraphs of paragraph (2)—
(a)the references in paragraph (1) to the insolvency date are to be read as references to the first such date during the period in which the company is insolvent, and
(b)paragraph (1) does not apply to an office-holder if at any time during the period in which the company is insolvent a conduct report has already been prepared and sent to the Department.
(9) The “office-holder” in respect of a company which is insolvent is—
(a)in the case of a company being wound up by the High Court, the official receiver;
(b)in the case of a company being wound up otherwise, the liquidator;
(c)in the case of a company in administration, the administrator;
(d)in the case of a company of which there is an administrative receiver, the receiver.
(10) The “insolvency date”—
(a)in the case of a company being wound up by the High Court, means the date on which the Court makes the winding-up order (see Article 105 of the Insolvency (Northern Ireland) Order 1989);
(b)in the case of a company being wound up by way of a members' voluntary winding up, means the date on which the liquidator forms the opinion that the company will be unable to pay its debts in full (together with interest at the official rate) within the period stated in the directors' declaration of solvency under Article 75 of the Insolvency (Northern Ireland) Order 1989;
(c)in the case of a company being wound up by way of a creditors' voluntary winding up where no such declaration under Article 75 of that Order has been made, means the date of the passing of the resolution for voluntary winding up;
(d)in the case of a company which has entered administration, means the date the company did so;
(e)in the case of a company in respect of which an administrative receiver has been appointed, means the date of that appointment.
(11) For the purposes of paragraph (10)(e), any appointment of an administrative receiver to replace an administrative receiver who has died or vacated office pursuant to Article 55 of the Insolvency (Northern Ireland) Order 1989 is to be ignored.
(12) In this Article, “director” includes a shadow director.]
F11Art. 10A inserted (6.4.2016) by Small Business, Enterprise and Employment Act 2015 (c. 26), s. 164(1), Sch. 8 para. 5(2); S.I. 2016/321, reg. 3(c) (with Sch. paras. 3, 4)
[F12Disqualification of director on finding of unfitness]N.I.
11.—(1) If it appears to the Department F13... that it is expedient in the public interest that a disqualification order should be made against a person who is, or has been, a director or shadow director of a company, the Department may apply to the High Court for such an order.
F14(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3) Where it appears to the Department F15... that, in the case of a person who has offered to give the Department a disqualification undertaking—
(a)the conduct of the person in relation to a company of which the person is or has been a director or shadow director [F16(either taken alone or taken together with his conduct as a director or shadow director of one or more other companies or overseas companies),] makes him unfit to be concerned in the management of a company, and
(b)it is expedient in the public interest that the Department should accept the undertaking (instead of applying, or proceeding with an application, for a disqualification order),
the Department may accept the undertaking.
(4) The High Court may make a disqualification order against a person where, on an application under this Article, it is satisfied that his conduct in relation to the company [F17(either taken alone or taken together with his conduct as a director or shadow director of one or more other companies or overseas companies)] makes him unfit to be concerned in the management of a company.
[F18(4A) Paragraph (1A) of Article 9 applies for the purposes of this Article as it applies for the purposes of that Article.]
(5) The maximum period of disqualification under this Article is 15 years.
F12Art. 11 heading substituted (1.10.2015) by Small Business, Enterprise and Employment Act 2015 (c. 26), s. 164(1), Sch. 8 para. 6(3); S.I. 2015/1689, reg. 2(h)
F13Words in art. 11(1) omitted (1.10.2015) by virtue of Small Business, Enterprise and Employment Act 2015 (c. 26), s. 164(1), Sch. 8 para. 6(2)(a); S.I. 2015/1689, reg. 2(h)
F14Art. 11(2) omitted (1.10.2015) by virtue of Small Business, Enterprise and Employment Act 2015 (c. 26), s. 164(1), Sch. 8 para. 6(2)(b); S.I. 2015/1689, reg. 2(h)
F15Words in art. 11(3) omitted (1.10.2015) by virtue of Small Business, Enterprise and Employment Act 2015 (c. 26), s. 164(1), Sch. 8 para. 6(2)(c); S.I. 2015/1689, reg. 2(h)
F16Words in art. 11(3)(a) inserted (1.10.2015) by Small Business, Enterprise and Employment Act 2015 (c. 26), s. 164(1), Sch. 8 para. 3(3)(a); S.I. 2015/1689, reg. 2(h) (with Sch. paras. 5-8)
F17Words in art. 11(4) inserted (1.10.2015) by Small Business, Enterprise and Employment Act 2015 (c. 26), s. 164(1), Sch. 8 para. 3(3)(b); S.I. 2015/1689, reg. 2(h) (with Sch. paras. 5-8)
F18Art. 11(4A) inserted (1.10.2015) by Small Business, Enterprise and Employment Act 2015 (c. 26), s. 164(1), Sch. 8 para. 3(3)(c); S.I. 2015/1689, reg. 2(h) (with Sch. paras. 5-8)
C4Art. 11 applied by S.I. 1989/638, reg. 20(2) (as inserted (1.10.2009) by European Economic Interest Grouping (Amendment) Regulations 2009 (S.I. 2009/2399)), {reg. 21(4)} (with reg. 2))