Examples of conduct that may not amount to unfitness to be a company director (and hence not leading to a disqualification order being made), are as follows:

  • Where a failure by the directors to understand his/her responsibilities had damaged trade creditors as a result of a combination of circumstances which were beyond his/her control.
  • Non-payment of taxes to HMRC, without any evidence of a deliberate policy of non-payment.
  • Where a single “lapse of judgment” had occurred by a director who had otherwise run his business very well.
  • Over reliance on another director who assured him that the problems in the business were being dealt with when in fact they were not.  Such reliance must however be reasonable in the circumstances of that case.
  • Not seeking professional advice regarding the sale of specific assets of the business – leading to its insolvency.
  • Not filing VAT returns prior to the company entering in to liquidation.