Ancillary Orders Consultation

Guideline users should be aware that the Equal Treatment Bench Book covers important aspects of fair treatment and disparity of outcomes for different groups in the criminal justice system. It provides guidance which sentencers are encouraged to take into account wherever applicable, to ensure that there is fairness for all involved in court proceedings.

May be made by

A magistrates' court or the Crown Court

Relevant legislation

Company Directors Disqualification Act 1986

Availability

A court may make a disqualification order

1. Where an offender has been convicted of an indictable offence in connection with the promotion, formation, management, liquidation or striking off of a company, with the receivership of a company’s property or with his being an administrative receiver of a company (Company Directors Disqualification Act 1986, s.2) or
2. Where an offender has been convicted of an offence involving a failure to file documents with, or give notice to, the registrar of companies. If the offence is triable only summarily, disqualification can be ordered only where the offender has been the subject of three default orders or convictions in the preceding five years (Company Directors Disqualification Act 1986, s.5)

Considerations

The purpose of the disqualification is to protect the public from directors who could seek to abuse their position, as a director, of a limited liability company in the future.

Period of disqualification

(Subject to the maximum – see below)

The period should be fixed by reference to the charges alleged and made out against the director.

Disqualification periods of 10 years and over should only be imposed in particularly serious cases such as a second disqualification.

Disqualification periods of six to 10 years apply to serious cases.

Disqualification periods of up to five years are appropriate in less  serious cases.

The length of the order should not be subject to a guilty plea discount, but factors such as previous good character and a plea of guilty may be relevant considerations in determining the level of seriousness.

Effect of the order

Disqualifies an offender from being a director or taking part in the promotion, formation or management of a company.

Magistrates’ court – 5 years

Crown Court – 15 years

Consequences of breach

Breach of a disqualification order is a criminal offence, maximum penalty 2 years’ imprisonment. See the Breach of disqualification from acting as a director guideline