Thinking time

There are interesting choices facing those the Insolvency Service seeks to disqualify as company directors.

You can give The Insolvency Service a ‘disqualification undertaking’ - this means you voluntarily disqualify yourself, and there's no court action. Or you can wait for The Insolvency Service to take you to court to disqualify you, and fight your case in the Companies Court, down Fetter Lane. It's the equivalent of a civil trial - with all the legal costs that entails. The letter from the Insolvency Service will say clearly why they think you're unfit; you have to work out if they've got it right. Grounds might include proving that the insolvency resulted from unforeseeable misfortune outside the director’s control; or an unexpected loss of key staff, rather than negligence or incompetence.

Disqualification doesn't just mean standing aside as a company director You can’t be involved in forming, marketing or running any company You could be fined or sent to prison for up to 2 years if you break the terms of the disqualification.