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How to Get Disqualified as a Director

Posted on: June 27th, 2025 by Alanah Lenten

Fancy having your name proudly listed on the Companies House Register of Disqualified Directors? No? Didn’t think so.

But if, hypothetically, you did want to ruin your entrepreneurial reputation, be barred from running a business, and have your conduct investigated by the Insolvency Service, then you’re in luck – we’ve got the perfect guide to getting disqualified as a company director. Be aware: it’s not glamorous, it’s not clever, and it could leave you out of business (and pocket) for up to 15 years.

What Is Director Disqualification?

Director disqualification is a legal order made under the Company Directors Disqualification Act 1986 that bars individuals from acting as a company director or even being involved in managing a company, for a set number of years. You don’t have to hold the title of “Director” for it to apply, either. If you’re effectively acting as one, you’re fair game.

The Insolvency Service, usually tipped off by insolvency practitioners, take the lead in investigating misconduct and seeking disqualification orders or voluntary undertakings – their outcomes report noted that in 2024-25 a whopping 1036 directors were disqualified (736 being from Covid Loan abuse).

This report serves as the inspiration for this article;  it’s not actually about how to get yourself banned from boardrooms, it’s about how to avoid it. Because knowing what not to do as a director is just as important as knowing what to do. And if you’re a founder, entrepreneur or startup director, understanding these pitfalls could save your business… and your reputation.

8 Fast-Track Ways to Ruin Your Boardroom Career

If you’re looking for a masterclass in what not to do, here are some sure-fire ways to end up disqualified:

1. Bounce Back Loan Abuse
Overstating your turnover or splurging the funds on a privately owned Tesla instead of your company? That’ll do it. This is currently the number one reason for disqualifications, often carrying no less than a 7-8 year ban, even for minor slip-ups (ouch!).

2. Fraudulent Transfers
Stripping your company of assets to keep them out of reach from creditors is a fast track to the naughty list.

3. Wrongful Trading
Continuing to trade while your company is insolvent (and harming creditors in the process) shows unfit conduct.

4. Ignoring the Books
If your accounting records are in worse shape than your inbox on a Monday morning, that’s a red flag. Failing to maintain proper books is a serious offence.

5. Ghosting Companies House
Not filing your accounts or returns is a no-no. It signals to regulators that something is being hidden, and they tend to investigate accordingly.

6. Dodging Tax
Not filing tax returns or fairly paying tax? HMRC will notice. So will the Insolvency Service. Enough said.

7. Going Off the Grid Post-Insolvency
Once your company enters a formal insolvency process, failing to cooperate with the appointed insolvency practitioner won’t go down well.

8. Peddling Tax Avoidance Schemes
Promoting dodgy tax avoidance schemes is a good way to go from “director” to “defendant”.

How Long Could You Be Barred?

Depending on the severity of the offence, disqualification spans:

  • 2–5 years for relatively serious offences.
  • 6–10 years for more significant misconduct.
  • 11–15 years for truly egregious cases.

In some cases, you can reduce this period with a voluntary undertaking, but be aware- accepting one could be interpreted as an admission of liability, especially if there’s a whiff of criminal conduct involved.

The Cost of Being Unfit

Beyond the obvious reputational damage and business disruption, a disqualified director can face compensation orders, be named and shamed online, and be banned from any business activities involving company formation or management. Further, well drafted Directors’ Service Agreements will contain a clause which states that disqualification as a director can result in the termination of employment, without notice. Therefore, not only may you face hefty fines, your income may also cease. 

So, How Can You Be a Good Director?

Here’s the good news: avoiding disqualification is relatively straightforward if you follow the rules

  • Stay transparent, and don’t treat your company as your personal piggy bank.
  • Understand and uphold your fiduciary and statutory duties.
  • Keep good financial records.
  • Act responsibly if your company is in financial difficulty.
  • Ask for professional advice early.

Think of your directorship like driving a high-performance vehicle. You don’t need to know every engine part but you do need to keep it roadworthy, fuelled, and headed in the right direction.

Final Thoughts

Want to protect your business and stay on the right side of the law? Then steer clear of the disqualification danger zones and keep your entrepreneurial journey firmly on the road.

Being a director isn’t about dodging disqualification, it’s about earning the trust to run a company and growing something that lasts. If you’re unsure about your responsibilities, there’s no shame in getting professional advice. There is shame in pretending you know best while heading for a 15-year ban. Contact Lefteris Kallou to gain clearer understanding of your fiduciary duties.

Read the other articles in this edition here : The Fineprint – Edition 1 – July 2025 – Lawrence Stephens

 

Why Founder-Led Businesses Are Reshaping the UK Economy

Posted on: June 27th, 2025 by Alanah Lenten

The FEBE Growth 100 2025 list is out, and it’s every bit as inspiring as we hoped. Packed with the UK’s fastest-growing, founder-led businesses, this year’s line-up is a celebration of bold ambition, fresh thinking and real entrepreneurial grit.

At Lawrence Stephens, we couldn’t be prouder to be part of the FEBE story. As a founder-led law firm ourselves, we know exactly what it takes to build something from the ground up. It’s messy, energising, terrifying and brilliant all at once. That’s why the FEBE Growth 100 resonates with us, it’s a badge of honour for those who’ve pushed boundaries and made things happen.

What Is FEBE and Why It’s Transforming the UK Founder Community?

If you haven’t come across FEBE yet (For Entrepreneurs, By Entrepreneurs) it’s the brainchild of John Maffioli, Ex-EY and the most enthusiastic man you’ll ever meet; and his wife and co-founder Charlotte Quince. FEBE exists to celebrate and support founders, not just in business, but in all the behind-the-scenes moments that come with growing something meaningful.

John often describes a FEBE event like being ‘A night out with your mates’. FEBE is built on community, honesty and camaraderie.  It’s about learning from the highs and the not-so-pretty lows.

Lawrence Stephens x FEBE: A Shared Vision for Supporting UK Founders

So why does our relationship with FEBE work so well? Because we get it. We’re also founder-led. We’ve lived the long days, the hard choices, the growing pains. And just like the businesses in the Growth 100, we’ve worked hard to scale up without losing our identity. In fact, if we weren’t a partner, rumour has it, we might have made the list!

Many of our clients are privately owned, founder-led businesses too, so we have a natural empathy for the pressures and possibilities that come with that territory. Whether it’s legal support on a new funding round, navigating a tricky people issue, or just being a sounding board, we back founders with the same drive and energy we see in ourselves.

Like FEBE’s ethos we pride ourselves on celebrating progress, embracing imperfection and connecting founders.

Turning the Spotlight on John Maffioli

Usually the one asking the questions, we recently flipped the script on FEBE founder John Maffioli who let us ask him a few.

Alanah: What inspired you to start FEBE?

John: We wanted to create the UK’s best founders club – a place where Britain’s top founders could come together, support one another, and build genuine friendships. Being a founder can be incredibly hard and lonely. FEBE was born out of shared experience. We knew there were so many brilliant founders across the country doing amazing things, but often in isolation. So we set out to build something that not only celebrates them but also helps them by creating a community where they can connect, share, and grow together. It’s not just about business, it’s about building real relationships with people who get it. That’s what inspired us, and that’s what keeps driving us: creating a space that’s meaningful, supportive, and rooted in the realness of entrepreneurship.

Alanah: What’s the hardest part of being an entrepreneur?

John: It is impossible to switch off. When you’re growing a business it is everything and all consuming.

Even if you’re supposed to be spending time with family, or trying to sleep, there’s a constant mental to-do list ticking away, and it’s impossible to create real separation between work and life. It’s not just about long hours; it’s the emotional investment. As a founder you carry the weight of every decision, every setback, and every missed opportunity. Even when things are going well, there’s always the next challenge to think about. The pressure to keep everything moving means you rarely give yourself permission to properly rest. And when your identity is so tied to the business, switching off can feel almost irresponsible – even though you know it’s exactly what’s needed sometimes!

Alanah: What’s your favourite part of being an entrepreneur?

John: The highs are unlike anything else. The good news and the successes are incredible and mean so much because it’s so personal. When something goes well it hits differently because you know exactly what went into getting there. The late nights, the risks, the doubts – all of that makes the successes feel so much more meaningful. There’s no safety net, so when it works, it’s not just business success, it’s personal. Those moments of progress or recognition feel huge. They remind you why you started in the first place.

Thanks John! Spoken like a true entrepreneur  and a reminder of why FEBE matters so much.

What’s next for UK founder-led businesses? 

Founder-led businesses are doing more than just scaling, they’re redefining what success looks like in the UK economy. The calibre of companies featured in the FEBE Growth 100 2025 list speaks volumes: these are businesses that are disrupting sectors and building brands with purpose and agility. From tech innovators and e-commerce disruptors to creative powerhouses and wellness challengers, these founders are not only growing fast, they’re leading with vision, values, and a deep connection to their customers and teams. It’s this blend of emotional commitment and commercial clarity that’s fuelling a new wave of economic dynamism across the UK.

At Lawrence Stephens, we’re proud to stand shoulder to shoulder with FEBE and the incredible community it champions. As a founder-led law firm, we understand the grit and graft it takes to build something from the ground up – and we see that same spirit reflected in our clients every day. Our partnership with FEBE is about more than just sponsorship; it’s a shared ethos. Together, we’re backing founders with the support, insight and authenticity they need to thrive and we’re excited to play a part in shaping a future economy powered by people who genuinely get it.

If you’d like to find out how else we are supporting founders please get in touch with Alanah Lenten.

Read the other articles in this edition here : The Fineprint – Edition 1 – July 2025 – Lawrence Stephens