The Company Director Disqualification Act 1986 allows the CMA to apply to court for an order disqualifying a director from holding company directorships or performing certain roles in relation to a company for a specified period of a minimum of 2 years up to a maximum 15 years. It can also accept undertakings by a director.
The following simple conditions must be satisfied when issuing a disqualification order:
- A company of which the individual is a director commits a breach of competition law; and
- The individual’s conduct as a director makes him unfit to be concerned in the management of a company.
The CMA has high expectations of directors which was also confirmed in the 60-second summary: “Company directors have a special responsibility to be well-informed about their company practices and to be sure they comply with the law”.