Solicitors Crucial for Disqualified Company Directors Case Defence

Wherever possible, disqualified director's orders should be defended. This is because the consequences of being declared disqualified company directors can be very harsh.

Being served with such an order can lead to a ban of up to 15 years, and there are criminal penalties for those who transgress the disqualification. Disqualified directors orders will also put severe restrictions on how business can be carried out.

A banned director can no longer have any say in the running of any company. He or she cannot form another company during the period of the disqualification. His name will come up on the list of Disqualified Directors Register when searched. They will be able to engage in business, but not with limited liability protection. Disqualified company directors are able to operate as sole traders, or in a business partnership, but this will mean their personal assets could be at risk if the new venture runs into difficulties.

As the consequences for disqualified company directors are so harsh it is always best to defend such an order where a defence is present. A director facing a possible ban is able to represent and defend himself, however this will normally prove to be ineffective. It will often be a key to a director's defensive success that s/he has hired an experienced legal defence team i.e. lawyers whom have previous disqualified director case experience.

The specialist solicitor will be able to deal with all correspondence from such bodies as Insolvency Service or their own solicitors before launching a defence at the legal proceedings. The solicitor will also be able to negotiate costs on behalf of the client if the defence proves successful.

Most importantly the legal representative will aid his client to formulate a defence. He will aid the director in the drawing up of the 'Summary of Truth.' One argument for the defence may be that even if the company has become insolvent it was not the director's fault. The legal advisor will help identify those useful witnesses which can help support the defence that the director did not act negligently or incompentently and is therefore still fit to act in the role of director.

The aim of the defence is to demonstrate to the court that person facing the prospect of becoming a disqualified company director is honest and that he is not responsible for the problems which have befallen the business.

Sometimes there is no defence. In circumstances such as these the solicitor will act on behalf of their client when trying to argue mitigating circumstances. If this can be demonstrated before the courts, then it may well encourage the judge to make the period of disqualification less severe.

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