242. Matters for determining unfitness of directors

(1) Where it falls to the Registrar to determine whether a person's conduct as a director of any particular company or companies makes him unfit to be concerned in the management of a company, the Registrar shall, as respects his conduct as a director of that company or, as the case may be, each of those companies, have regard in particular—
(a) to the matters mentioned in Part I of Schedule 2 to these Regulations, and
(b) where the company has become insolvent, to the matters mentioned in Part II of that Schedule,
and references in that Schedule to the director and the company are to be read accordingly.
(2) In determining whether it may accept a disqualification undertaking from any person the Registrar shall, as respects the person's conduct as a director of any company concerned, have regard in particular—
(a) to the matters mentioned in Part I of Schedule 2 to these Regulations, and
(b) where the company has become insolvent, to the matters mentioned in Part II of that Schedule,
and references in that Schedule to the director and the company are to be read accordingly.
(3) Section 238(2) applies for the purposes of this section and Schedule 2 as it applies for the purposes of section 238(duty of Registrar to disqualify unfit directors of insolvent companies) and 239 (disqualification order or undertaking; and reporting provisions) and in this section and that Schedule "director" includes a shadow director.
(4) The Board may make rules modifying any of the provisions of Schedule 2, and such rules may contain such transitional provisions as may appear to the Board to be necessary or expedient.