§ Mr. SpellerTo ask the Secretary of State for Trade and Industry if he will list the conditions under which a person may be banned from being a director of a private limited company or of a public limited company.
§ Mr. Redwood[holding answer 16 March 1990]: A person may be banned from holding such positions in the circumstances specified in the Company Directors Disqualification Act 1986. These are: conviction of an indictable offence in connection with the promotion, formation, management or liquidation of a company, or with the receivership or management of a company's property; persistent breaches of companies legislation; fraudulent trading; fraud in relation to a company while an officer or liquidator of the company or receiver or manager of its property; on summary conviction of an offence specified in the above Act; having been a director of a company which has become insolvent where the court finds that the individual's conduct as a director of that company makes him incompetent to be concerned in the management of a company; and where the court is satisfied, following the investigation of a company under 430W section 437 of the Companies Act 1985, or sections 94 or 177 of the Financial Services Act 1986, or where it appears that such an order should be made in the light of information or documents obtained under section 447 or 448 of the Companies Act 1985 or section 105 of the Financial Services Act 1986 or section 2 of the Criminal Justice Act 1987 or section 52 of the Criminal Justice (Scotland) Act 1987 or section 83 of the Companies Act 1989, that the person's conduct in relation to a company makes him unfit to be concerned in the management of a company; and where a court has made a declaration under section 213 or 214 of the Insolvency Act 1986 that a person is liable to contribute to a company's assets.
A person may also be disqualified where a court revokes an administration order under section 429 of the Insolvency Act 1986. In addition, a bankrupt person is prohibited automatically from acting as a director and a more limited automatic prohibition applies in the circumstances specified in section 216 of the Insolvency Act 1986.