ICAEW BL · Chapter 10 · Question 5 of 10
Conrad has been disqualified under the Company Directors Disqualification Act 1986. Despite this, he continues to act as a director of Thistle Ltd and runs its day-to-day management. Which statement is correct?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) He commits a criminal offence and is personally liable for the company's debts incurred while he acted in breach of the order
Explanation
Acting in breach of a disqualification order or undertaking is a criminal offence under s13 CDDA 1986. Under s15, the disqualified person is also personally liable for the relevant debts of the company incurred while they were acting in breach. So is anyone who acts on their instructions knowing of the disqualification. Shareholder approval is irrelevant, and liability does not depend on insolvency.
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