Section 1A (1) of the CDDA 1986 enables a person to give an undertaking meaning that:
- He or she will not be a director of a company, act as a receiver of a company’s property or in any way, whether directly or indirectly, be concerned or take part in the promotion, formation or management of a company unless (in each case) he has permission of the Court, and
- He or she will not act as an insolvency practitioner. Director Disqualification undertakings are only available where disqualification proceedings are proposed following the insolvency of a company (Section 6 of the Company Directors Disqualification Act 1986) or following an investigation of a company by the Secretary of State (Section 8 of the Company Directors Disqualification Act 1986).
Disqualification undertakings are more commonly entered into in the first situation.