A businessman has been banned from acting as a company director for eight years after it was discovered that he continued to serve as a director between July 2013 and July 2015, despite being bankrupt since 2005.

In addition to the disqualification, he was sentenced to 22 months in prison in October 2024 for contempt of court in an unrelated case concerning company transfers made in breach of a freezing order.

The Insolvency Service’s perspective

The Insolvency Service emphasised that bankruptcy automatically prevents someone from being a company director. They highlight that the ban exists to protect creditors and the public, and that misconduct investigations are pursued rigorously.

Implications for business owners

This case underscores the importance of understanding the legal restrictions on who can act as a company director.

It is also important to note that even if Companies House records indicate that a directorship has ended, what truly matters is whether someone is still involved in managing the business.

If you are considering appointing a director to your company or bringing someone in to run your business, it is crucial to verify their status beforehand.

For anyone facing bankruptcy, seeking professional advice early is essential to prevent potential complications.

If you require support with company secretarial or insolvency services, please get in touch — we would be happy to assist.

See: https://www.gov.uk/government/news/former-manchester-businessman-banned-after-ignoring-bankruptcy-restrictions-to-act-as-company-director-for-two-years