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The Small Business, Enterprise and Employment Act 2015 received Royal Assent in March 2015 and has brought in new measures to provide a greater deterrent to company directors acting improperly.

From 1 October 2015 the Directors Disqualification Process will be strengthened to enable the Secretary of State (“SoS”) to seek to have a director of a limited company disqualified if they:

• Have been convicted of a company related offence abroad

• Influenced or instructed a director to behave in a way that has resulted in a disqualification of that director

• Breach laws or regulations

• Have a track record of being involved in failing companies.

The extent and nature of the harm or loss caused will be relevant in deciding if disqualification is appropriate.

The maximum period of time elapsing between a company being declared insolvent and the SoS seeking disqualification will be increased from 2 to 3 years.

The SoS can, for unfit conduct occurring after 1 October 2015, use information from other regulators in disqualification proceedings.

Further a disqualified director can in the future be required by the Court to pay compensation to creditors who have suffered a loss financially as a result of unfit conduct that occurs after 1 October 2015.

If any issue in this blog effects you and you wish to discuss this further please do not hesitate to contact Jennie Blagg on 0113 8871834 or email at