|
In appropriate cases the Insolvency
Act 2000 allows disqualification orders to be made without
referring the matter to court.
This clearly reduces the cost when
the DTI and the director concerned have agreed:
- a statement of facts and
- a period of disqualification.
The Insolvency Act was passed in
2000 but its provisions were not legally brought into effect
in 2000. Different sections are being brought into law on
dates to be prescribed by regulations issued by Parliament
from time to time.
Section 6 of the Act concerning "disqualification
undertakings" bacame law on the 2nd April 2001.
The power to accept undertakings
is conferred on the Secretary of State. Where there is agreement,
disqualification can be achieved administratively by the director
giving an undertaking to the Secretary of State. This will
result in earlier disqualification for those who give an undertaking.
It will also save time.
Section 6 of the Insolvency Act 2000 states:
"This section amends the Company
Directors Disqualification Act 1986 by providing that directors
whom the Secretary of State considers unfit may consent to
a period of disqualification without the need for court involvement
by giving a disqualification undertaking to the Secretary
of State.
The period of disqualification
would be for a maximum of 15 years and in the case of an undertaking
under section 7 of the Company Directors Disqualification
Act 1986, as amended by this section, for a period of 2 years.
New section 8A of that act which will be inserted by this
section provides that the disqualified person may subsequently
apply to the court to vary the undertaking he has given!!
Crown Copyright
To view the Insolvency Act 2000
please click
here.
To view the explanatory notes to
the Insolvency Act 2000 please
click here.
|
