The Office of Fair Trading (OFT) has the power to apply for an order banning a person from being a director in cases in which competition law is breached. Orders are granted under the Company Directors Disqualification Act 1986 and are issued when the conduct of a director is such that it renders them unfit to act as a director. More than 2,000 such orders were sought last year.
The OFT has recently issued guidance on when it will seek such orders. In essence, it will follow a five-step test, asking the following questions:
- Has there been a breach of competition law?
- Was the breach significant in nature and was a financial penalty imposed?
- Did the company concerned benefit from leniency?
- What was the director’s degree of responsibility for the breach?
- Are there aggravating or mitigating circumstances?
See the OFT website for further information on director disqualifications.
We would like to thank you for the superb work and attention to detail that has gone into our dispute with the council so far!