Disqualification orders against directors

7.6 Chapter 2 of Part 10 of CR 2020 sets out the general duties of a director of a company. These are:
a. the duty to act within powers of the company’s constitution;
b. the duty to promote the success of the company;
c. the duty to exercise independent judgement;
d. the duty to exercise reasonable care, skill and diligence;
e. the duty to avoid conflicts of interest;
f. the duty not to accept benefits from third parties; and
g. the duty to declare an interest in a proposed transaction or arrangement.
7.7 A breach of any of these duties may lead to the director receiving a disqualification order and ultimately being disqualified from acting as a director.
7.8 A disqualification order must be issued to a person who is or has been a director of a company which has at any time become insolvent (whether while the person was a director or subsequently), and their conduct as a director of that company (and any other company) makes them unfit to be concerned in the management of a company.
7.9 A disqualification order may not be made for participation in wrongful trading more than two years after the company of which the person is or has been a director became insolvent.