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Company Directors Disqualification Act 1986 (c. 46)Introductory TextPreliminary (ss. 1-1A)1. Disqualification orders: general1A. Disqualification undertakings: generalDisqualification for general misconduct in connection with companies (ss. 2-5A)2. Disqualification on conviction of indictable offence3. Disqualification for persistent breaches of companies legislation4. Disqualification for fraud, etc., in winding up5. Disqualification on summary conviction5A. Disqualification for certain convictions abroadDisqualification for unfitness (ss. 6-8)6. Duty of court to disqualify unfit directors7. Disqualification orders under section 6: applications and acceptance of undertakings7A. Office-holder's report on conduct of directors8. Disqualification of director on finding of unfitnessFurther provision about disqualification undertakings (ss. 8A-9)8A. Variation etc. of disqualification undertaking9. Matters for determining unfitness of directorsPersons instructing unfit directors (ss. 8ZA - 8ZE)8ZA. Order disqualifying person instructing unfit director8ZB. Application for order under section 8ZA8ZC. Disqualification undertaking instead of an order under section 8ZA8ZD. Order disqualifying person instructing unfit director: other cases8ZE. Disqualification undertaking instead of an order under section 8ZDDisqualification for promoting tax avoidance (ss. 8ZF-8ZG)8ZF. Disqualification following winding up under s.85 of Finance Act 20228ZG. Disqualification on finding of unfitness: promoters of tax avoidanceDisqualification for competition infringements (ss. 9A-9E)9A. Competition disqualification order9B. Competition undertakings9C. Competition investigations9D. Co-ordination9E. InterpretationOther cases of disqualification (ss. 10-12C)10. Participation in wrongful trading11. Undischarged bankrupts11A. Designated persons under sanctions legislation12. Failure to pay under county court administration order12A. Northern Irish disqualification orders12B. Northern Irish disqualification undertakings12C. Determining unfitness etc: matters to be taken into accountConsequences of contravention (ss. 13-15)13. Criminal penalties14. Offences by body corporate15. Personal liability for company's debts where person acts while disqualifiedCompensation orders and undertakings (15A-15C)15A. Compensation orders and undertakings15B. Amounts payable under compensation orders and undertakings15C. Variation and revocation of compensation undertakingsSupplementary provisions (ss. 16-19)16. Application for disqualification order17. Application for leave under an order or undertaking18. Register of disqualification orders and undertakings19. Special savings from repealed enactmentsMiscellaneous and general (ss. 20-26)20. Admissibility in evidence of statements20A. Legal professional privilege21. Interaction with Insolvency Act 1986 etc21A. Bank insolvency21B. Bank administration21C. Building society insolvency and special administration22. Interpretation22A. Application of Act to building societies22B. Application of Act to incorporated friendly societies22C. Application of Act to NHS foundation trusts22D. Application of Act to open-ended investment companies22E. Application of Act to registered societies22F. Application of Act to charitable incorporated organisations22G. Application of Act to further education bodies22H. Application of Act to protected cell companies22I. Power to amend application of Act in relation to relevant entities23. Transitional provisions, savings, repeals24. Extent25. Commencement26. CitationSchedule 1 Determining unfitness etc: matters to be taken into accountSchedule 1, Part I Matters to be taken into account in all cases (paras. 1-4)Schedule 1, Part II Additional matters to be taken into account where person is or has been a director (paras. 5-7)Schedule 1, Part III Interpretation (paras. 8-9)Schedule 2 Savings from Companies Act 1981 ss. 93, 94, and Insolvency Act 1985 Schedule 9Schedule 3 Transitional provisions and savingsSchedule 4 Repeals
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AI Summary of 6. Duty of court to disqualify unfit directors

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Version status: In force | Document consolidation status: Updated to reflect all known changes
Version date: 15 February 2022 - onwards
Version 6 of 6

6. Duty of court to disqualify unfit directors

(1) The court shall make a disqualification order against a person in any case where, on an application under this section -

(a) the court is satisfied -

(i) that the person is or has been a director of a company which has at any time become insolvent (whether while the person was a director or subsequently), or

(ii) that the person has been a director of a company which has at any time been dissolved without becoming insolvent (whether while the person was a director or subsequently), and

(b) the court is satisfied that the person's conduct as a director of that company (either taken alone or taken together with the person's conduct as a director of one or more other companies or overseas companies) makes the person unfit to be concerned in the management of a company.

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