Director information hub: Disqualification - the insolvent company investigation process

Understanding the process when the Insolvency Service investigates your conduct as director of an insolvent company.

When a company enters formal insolvency proceedings, the office-holder (for example, an administrator or liquidator) must submit a director conduct report to the Insolvency Service within 3 months.

The Insolvency Service, acting on behalf of the Secretary of State, reviews this information and decides whether it is in the public interest to investigate further to see if director disqualification may be appropriate.

If misconduct is found, you may be disqualified from acting as a company director from 2 up to 15 years.

During a period of disqualification, you cannot act as a director or be involved in the promotion, formation or management of a company without the court’s permission.

If you breach the disqualification, you may face criminal proceedings and could be held personally liable for company debts.

It is important that you cooperate with the office-holder and provide accurate, up-to-date contact details throughout the insolvency process.

The criteria for being disqualified as a director is extensive.

If the Insolvency Service decides to open a civil investigation, we will write to you setting out the initial areas of concern and invite you to provide your comments.

It is in your best interests to respond. If you do not, the Insolvency Service can only rely on information available from other sources when making their decision. Any evidence, explanations or information you provide will be important when making this decision.

During the investigation the Insolvency Service may contact you again to ask further questions or request more information. You can also submit further information to the Insolvency Service at any stage of the process.