Litigation · 9 February 2026
Disqualification of directors in bankruptcy
When does the trustee bring disqualification proceedings, and how can management respond?
Disqualification can be imposed on someone who took part in managing a company and conducted business in a grossly irresponsible manner, barring them from company management for up to three years.
The trustee brings the case before the bankruptcy court. It typically starts with missing bookkeeping, missing reporting, or payments to related parties shortly before bankruptcy.
An effective defence rebuilds the timeline: what management knew and when, what was done to remedy the situation, and which decisions had a genuine commercial rationale.
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