UK Director disqualification sanctions guidance.

The UK Insolvency Service has issued General guidance about director disqualification sanctions, what they mean and how to apply for a licence.

Director disqualification sanctions

1. Sanctions are a legal way the UK government can deter and disrupt threats as part of its wider foreign policy.
2. Under the Sanctions and Anti-Money Laundering Act 2018, Section 3A enables legislation to make director disqualification sanctions.

The effect of director disqualification sanctions

3. Individuals who are subject to director disqualification sanctions are banned directly or indirectly from:

• Being a director of a UK company
• Being a director of a foreign company that has sufficient connection to the UK, even if it is not registered here. For example, if it carries out business or has assets here
• Taking part in or being concerned in the promotion, formation or management of a company unless a licence has been issued or an exception is in place.

 4. The ban applies to England, Wales, Scotland and Northern Ireland under the following legislation:

• Section 11A of the Company Directors Disqualification Act 1986
• Article 15A of the Company Directors Disqualification (Northern Ireland) Order 2002

5. You will have breached director disqualification sanctions if you do something that they ban.

More information on the effect of a disqualification.

6. https://www.gov.uk/government/publications/corporate-insolvency-effect-of-a-disqualification-order/effect-of-a-disqualification

UK Sanctions list

7. Anyone with director disqualification sanctions made against them is listed on the UK sanctions list, which specifies which sanctions apply.

Apply for a licence

8. You can apply to the Insolvency Service for a licence to carry out acts prohibited by director disqualification sanctions.
9. Find out more about how to apply for a licence.  

• https://www.gov.uk/guidance/licence-application-for-directors-subject-to-director-disqualification-sanctions

Licencing offences

10. It is illegal for a person to provide misleading information or documents when applying for a licence.
11. If you hold a licence, it is illegal to:

• Ignore the conditions listed on the licence
• Do anything that is not specified by your licence permission
• Do anything banned by director disqualification sanctions without an exception

Investigation and enforcement

12. The Insolvency Service is responsible for investigating and prosecuting individuals suspected of breaching director disqualification sanctions and licensing offences.
13. If you’re found guilty of breaching director disqualification sanctions and/or a licencing offence, you can be fined and/or imprisoned for up to 2 years.
14. The Insolvency Service can also refer cases to other law enforcement agencies for prosecution.

Report a disqualified director to the Insolvency Service.

15. You can report a disqualified director for breaching their sanctions or licence terms to the Insolvency Service.

Report a disqualified director.

16. https://www.gov.uk/report-a-disqualified-director

More information about The Insolvency Service investigation and enforcement work.

17. https://www.gov.uk/government/collections/insolvency-service-investigations-and-enforcement-what-we-do-our-outcomes-and-complaints

Source

https://www.gov.uk/guidance/director-disqualification-sanctions?utm_content=&utm_medium=email&utm_name=&utm_source=govdelivery