Acting as Company Director following insolvency
Posted on 3rd April 2019 at 11:36
The simple answer is yes, you are entitled to act as director over as many companies as you like, a liquidation or administration will not prohibit you retaining your current directorships or indeed embarking on a new directorship following an Insolvency.
In severe instances of misconduct of directors, The Insolvency Service may enforce disqualification action on a director for a period ranging from 2-15 years depending on the severity of misconduct. This would lead to all directorships having to be revoked. However, this will not be as an automatic result of an insolvency, and statistics show that the level of action taken by the Insolvency Service over recent years has significantly reduced.
Should the directors of the insolvent entity wish to restart using a Similar name or trading style of the company then certain restrictions apply in accordance with section 216 of the Insolvency Act. Details can be found on the following link https://www.affordableliquidators.co.uk/blog/section-216-ia86-re-use-of-company-name/
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