Question 1

Is This Legal?

Accepted Answer

Q: Is it legal for someone who is on the Insolvency Register to be a director of the Residents’ company? FPRA Chairman Bob Smytherman replies: I am not a lawyer but my understanding of the situation with electing company directors who have been insolvent is they would not automatically be barred from serving as a director and even if they had been this would not necessarily be a lifetime ban. I suggest contacting Companies House who will be able to confirm whether the individual is currently banned from serving as a director. As part of your due diligence before electing a director who has been struck off, it is worth establishing the reasons for this and whether their ban has been served, or whether the reasons for the ban are such they would justify them not serving again, while at the same time demonstrating the rules of natural justice to the person seeking a nomination as director. [Submitted October 2016]

Question 2

Is This Legal?

Accepted Answer

Q: Is it legal for someone who is on the Insolvency Register to be a director of the Residents’ company? FPRA Chairman Bob Smytherman replies: I am not a lawyer but my understanding of the situation with electing company directors who have been insolvent is they would not automatically be barred from serving as a director and even if they had been this would not necessarily be a lifetime ban. I suggest contacting Companies House who will be able to confirm whether the individual is currently banned from serving as a director. As part of your due diligence before electing a director who has been struck off, it is worth establishing the reasons for this and whether their ban has been served, or whether the reasons for the ban are such they would justify them not serving again, while at the same time demonstrating the rules of natural justice to the person seeking a nomination as director. [Submitted October 2016]

Is This Legal?

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