Company directors can be disqualified from acting as a director, under the Company Directors Disqualification Act 1986 if they are found guilty of 'unfit conduct' - for example, if they:
- committed fraud
- continued to trade when the company was insolvent - or they failed to assist the appointed Insolvency Practitioner
- allowed a company to continue trading which cannot pay its debts
- failed to maintain proper company accounting records
- failed to submit company accounts and returns to Companies House
- did not pay any tax owed by the company
- used company money or assets for personal benefit
Under UK law you cannot be a company director while your bankruptcy remains undischarged in the UK. You are legally prohibited from managing, forming or promoting a limited company unless you have the explicit permission of the court.
It is important that you understand and abide by these limitations. If you attempt to become a company director while your bankruptcy is undischarged, you will be breaking the law. Once your bankruptcy has been discharged, you are free to become a director again.