Director Disqualification:
Persons Instructing Unfit Directors

The basis of the offence in this section relates to a person who directs or instructs a director who has already been disqualified on the grounds that they are unfit to be a director of a company.

This person (who has already been disqualified) is defined as the "main transgressor".

It is well established that a shadow director (someone who is not a registered director, but who influences control over the directors) may be the subject of a disqualification order or undertaking.

In this situation the main transgressor must already have been disqualified, and influence must be exercised over the main transgressor by this shadow director. The shadow director may then be liable for disqualification. It is sufficient that the influence is over a single person, or perhaps a board of directors.

If you are being investigated by the Insolvency Service in relation to these matters, it is important that you clearly understand the applicable law and make precise representations. We can assist you with this and advise you on your options accordingly.

The relevant legislation here is found in sections 8ZA – 8ZE of the Company Directors Disqualification Act 1986:

https://www.legislation.gov.uk/ukpga/1986/46/crossheading/persons-instructing-unfit-directors.