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The concept of a carecraft order first
arose in a case where a director agreed to disqualification
for a set period of years prior to the case having to go to
trial.
By coming to such an agreement the director
avoided much of the court costs which can be substantial.
The director however, still had to meet
the costs incurred up to the point at which he agreed to the
disqualification.
Under the carecraft procedure the director
agrees with the DTI:
- a statement of facts and
- a set period of disqualification
The agreement would then be submitted
to the court so that the appropriate court order could be
made.
Following the introduction into
law of the Insolvency Act 2000 the procedure has been simplified
even further. The relevant
sections of the Insolvency Act 2000 were brought into effect
on the 2nd April 2001. From that day on it has been possible
for directors to enter into "disqualification undertakings"
direct with the DTI without there having had to have been
any court appearances.
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