Economic Crime and Corporate Transparency Act 2023 · PART 1 Companies etc

40 Disqualified directors

s. 40 · in force: yes

Captured statutory text (L5)

40 Disqualified directors

(1)The Companies Act 2006 is amended as follows.

(2)After section 159 insert— Disqualified person not to be appointed as director(159A)

(1)A person may not be appointed a director of a company if the person is disqualified under the directors disqualification legislation (see subsection (2)).

(2)In the table—

(a)Part 1 defines “disqualified under the directors disqualification legislation” for the purposes of provisions of this Act so far as relating to—

(i)a company registered in England and Wales or Scotland, or

(ii)the delivery of a document to the registrar of companies for England and Wales or Scotland or a statement contained in such a document;

(b)Part 2 defines “disqualified under the directors disqualification legislation” for the purposes of provisions of this Act so far as relating to—

(i)a company registered in Northern Ireland, or

(ii)the delivery of a document to the registrar of companies for Northern Ireland or a statement contained in such a document.

| For those purposes a person (P) is disqualified under the directors disqualification legislation if: | Except in the application of the provision in relation to P acting in a capacity, or doing anything, for which P has the permission of a court or the authority of a licence, or in respect of which an exception applies, by virtue of: | | --- | --- | | Part 1: England and Wales and Scotland | | P is subject to a disqualification order or undertaking under the Company Directors Disqualification Act 1986. | Section 1(1), 1A(1) or 9B(4) of the 1986 Act. | | Any of the circumstances mentioned in section 11 of the Company Directors Disqualification Act 1986 (bankruptcy etc) apply to P. | Section 11 of the 1986 Act. | | P is subject to director disqualification sanctions within the meaning of section 11A of the Company Directors Disqualification Act 1986. | Section 15(3A) of the Sanctions and Anti-Money Laundering Act 2018 (exceptions and licences). | | Section 12 of the Company Directors Disqualification Act 1986 (disabilities on revocation of administration order against an individual) applies to P. | Section 12 of the 1986 Act. | | P is subject to a disqualification order or undertaking mentioned in section 12A or 12B of the Company Directors Disqualification Act 1986 (recognition of Northern Ireland disqualification orders and undertakings). | Section 12A or 12B of the 1986 Act. | | P is disqualified as mentioned in section 1184(2)(a) or (b) or is subject to a disqualification undertaking under section 1184(3). | Section 1184(5). | | Part 2: Northern Ireland | | P is subject to a disqualification order or undertaking under the Company Directors Disqualification (Northern Ireland) Order 2002 (S.I.2002/3150 (N.I. 4)). | Article 3(1), 4(1) or 13B(4) of the 2002 Order. | | Any of the circumstances mentioned in Article 15 of the Company Directors Disqualification (Northern Ireland) Order 2002 (bankruptcy etc) apply to P. | Article 15 of the 2002 Order. | | P is subject to director disqualification sanctions within the meaning of Article 15A of the Company Directors Disqualification (Northern Ireland) Order 2002. | Section 15(3A) of the Sanctions and Anti-Money Laundering Act 2018 (exceptions and licences). | | Article 16 of the Company Directors Disqualification (Northern Ireland) Order 2002 (disabilities on revocation of administration order against an individual) applies to P. | Article 16 of the 2002 Order. | | P is subject to a disqualification order or undertaking mentioned in Article 17 of the Company Directors Disqualification (Northern Ireland) Order 2002 (recognition of GB disqualification orders and undertakings). | Article 17 of the 2002 Order. | | P is disqualified as mentioned in section 1184(2)(a) or (b) or is subject to a disqualification undertaking under section 1184(3). | Section 1184(5). |

(3)An appointment made in contravention of this section is void.

(4)Nothing in this section affects any liability of a person under any provision of the Companies Acts or any other enactment if the person—

(a)purports to act as director, or

(b)acts as shadow director,

although the person could not, by virtue of this section, be validly appointed as a director.

(3)After section 169 insert— Removal from office of disqualified directors(169A)

(1)A person who has been appointed as a director of a company ceases to hold office by virtue of that appointment if the person becomes disqualified under the directors disqualification legislation (see section 159A(2)).

(2)Nothing in this section affects any liability of a person under any provision of the Companies Acts or any other enactment, if, having ceased to hold office by virtue of subsection (1), the person—

(a)purports to act as director, or

(b)acts as shadow director.

(3)In relation to a person appointed as a director of a company before the time when this section comes into force, the reference in subsection (1) to a person who becomes disqualified includes a reference to a person who, at that time, is already disqualified.

(4)In Schedule 8 (index of defined expressions), at the appropriate place insert— | disqualified under the directors disqualification legislation | section 159A(2) | | --- | --- | .

Full captured verbatim text

(1) The Companies Act 2006 is amended as follows.

(2) After section 159 insert—

Disqualified person not to be appointed as director(159A) (1) A person may not be appointed a director of a company if the person is disqualified under the directors disqualification legislation (see subsection (2)).

(2) In the table—

(a) Part 1 defines “disqualified under the directors disqualification legislation” for the purposes of provisions of this Act so far as relating to—

(i) a company registered in England and Wales or Scotland, or

(ii) the delivery of a document to the registrar of companies for England and Wales or Scotland or a statement contained in such a document;

(b) Part 2 defines “disqualified under the directors disqualification legislation” for the purposes of provisions of this Act so far as relating to—

(i) a company registered in Northern Ireland, or

(ii) the delivery of a document to the registrar of companies for Northern Ireland or a statement contained in such a document.

| For those purposes a person (P) is disqualified under the directors disqualification legislation if: | Except in the application of the provision in relation to P acting in a capacity, or doing anything, for which P has the permission of a court or the authority of a licence, or in respect of which an exception applies, by virtue of: |
| --- | --- |
| Part 1: England and Wales and Scotland |
| P is subject to a disqualification order or undertaking under the Company Directors Disqualification Act 1986. | Section 1(1), 1A(1) or 9B(4) of the 1986 Act. |
| Any of the circumstances mentioned in section 11 of the Company Directors Disqualification Act 1986 (bankruptcy etc) apply to P. | Section 11 of the 1986 Act. |
| P is subject to director disqualification sanctions within the meaning of section 11A of the Company Directors Disqualification Act 1986. | Section 15(3A) of the Sanctions and Anti-Money Laundering Act 2018 (exceptions and licences). |
| Section 12 of the Company Directors Disqualification Act 1986 (disabilities on revocation of administration order against an individual) applies to P. | Section 12 of the 1986 Act. |
| P is subject to a disqualification order or undertaking mentioned in section 12A or 12B of the Company Directors Disqualification Act 1986 (recognition of Northern Ireland disqualification orders and undertakings). | Section 12A or 12B of the 1986 Act. |
| P is disqualified as mentioned in section 1184(2)(a) or (b) or is subject to a disqualification undertaking under section 1184(3). | Section 1184(5). |
| Part 2: Northern Ireland |
| P is subject to a disqualification order or undertaking under the Company Directors Disqualification (Northern Ireland) Order 2002 (S.I.2002/3150 (N.I. 4)). | Article 3(1), 4(1) or 13B(4) of the 2002 Order. |
| Any of the circumstances mentioned in Article 15 of the Company Directors Disqualification (Northern Ireland) Order 2002 (bankruptcy etc) apply to P. | Article 15 of the 2002 Order. |
| P is subject to director disqualification sanctions within the meaning of Article 15A of the Company Directors Disqualification (Northern Ireland) Order 2002. | Section 15(3A) of the Sanctions and Anti-Money Laundering Act 2018 (exceptions and licences). |
| Article 16 of the Company Directors Disqualification (Northern Ireland) Order 2002 (disabilities on revocation of administration order against an individual) applies to P. | Article 16 of the 2002 Order. |
| P is subject to a disqualification order or undertaking mentioned in Article 17 of the Company Directors Disqualification (Northern Ireland) Order 2002 (recognition of GB disqualification orders and undertakings). | Article 17 of the 2002 Order. |
| P is disqualified as mentioned in section 1184(2)(a) or (b) or is subject to a disqualification undertaking under section 1184(3). | Section 1184(5). |

(3) An appointment made in contravention of this section is void.

(4) Nothing in this section affects any liability of a person under any provision of the Companies Acts or any other enactment if the person—

(a) purports to act as director, or

(b) acts as shadow director,

although the person could not, by virtue of this section, be validly appointed as a director.

(3) After section 169 insert—

Removal from office of disqualified directors(169A) (1) A person who has been appointed as a director of a company ceases to hold office by virtue of that appointment if the person becomes disqualified under the directors disqualification legislation (see section 159A(2)).

(2) Nothing in this section affects any liability of a person under any provision of the Companies Acts or any other enactment, if, having ceased to hold office by virtue of subsection (1), the person—

(a) purports to act as director, or

(b) acts as shadow director.

(3) In relation to a person appointed as a director of a company before the time when this section comes into force, the reference in subsection (1) to a person who becomes disqualified includes a reference to a person who, at that time, is already disqualified.

(4) In Schedule 8 (index of defined expressions), at the appropriate place insert—

| disqualified under the directors disqualification legislation | section 159A(2) |
| --- | --- |

.

What this provision means

Model summary, checked against the text on the left.

Relevance to Signicat: 2/3 · detailed summary (L4) Status: ok · Stored artifact; current recipe verification unavailable

Prohibits the appointment of disqualified persons as directors, voiding contraventions and providing for automatic removal from office.

(1) A person may not be appointed a director of a company if the person is disqualified under the directors disqualification legislation (see subsection (2)).

(3) An appointment made in contravention of this section is void.

(1) A person who has been appointed as a director of a company ceases to hold office by virtue of that appointment if the person becomes disqualified under the directors disqualification legislation (see section 159A(2)).

Under section 159A of the Companies Act 2006, a person may not be appointed a director of a company if disqualified under the directors disqualification legislation, and any appointment in contravention is void. Under section 169A, a director who becomes disqualified under that legislation automatically ceases to hold office. Disqualification includes disqualification orders, bankruptcy restrictions, sanctions disqualification, administration order disabilities, and reciprocal GB/NI disqualification.

kyb.company_verificationscreening.pep_sanctions_adverse_media

Refers to

other law external_cite · s. 15

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cross-reference internal_cite · s. 159

cross-reference internal_cite · s. 169

Referred to by

cross-reference internal_cite · Sch. 3 para. 5

Part summaries

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synthesis coverage: missing/unverified L2 schedule-10-part-1

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synthesis coverage: missing/unverified L2 schedule-11

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synthesis coverage: missing/unverified L2 schedule-12

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synthesis coverage: missing/unverified L2 schedule-13

synthesis coverage: missing evaluation uk:ukpga/2023/56#schedule-13-paragraph-1

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Instrument tier unavailable

Change history as published

S. 196 198 and cross-heading omitted (29.6.2026) by virtue of Crime and Policing Act 2026 (c. 20), ss. 250(7)(a), 255(3)(k) · repeated 3×

Pending effects amendments not yet applied to this text

s. 199 coming into force by The Economic Crime and Corporate Transparency Act 2023 (Commencement No. 3) Regulations 2024 reg. 3 · Effective date unknown · s. 199

s. 200 coming into force by The Economic Crime and Corporate Transparency Act 2023 (Commencement No. 3) Regulations 2024 reg. 3 · Effective date unknown · s. 200

s. 201 coming into force by The Economic Crime and Corporate Transparency Act 2023 (Commencement No. 3) Regulations 2024 reg. 3 · Effective date unknown · s. 201

s. 202 coming into force by The Economic Crime and Corporate Transparency Act 2023 (Commencement No. 3) Regulations 2024 reg. 3 · Effective date unknown · s. 202

s. 203 coming into force by The Economic Crime and Corporate Transparency Act 2023 (Commencement No. 3) Regulations 2024 reg. 3 · Effective date unknown · s. 203

Show all 14

s. 204 coming into force by The Economic Crime and Corporate Transparency Act 2023 (Commencement No. 3) Regulations 2024 reg. 3 · Effective date unknown · s. 204

s. 205 coming into force by The Economic Crime and Corporate Transparency Act 2023 (Commencement No. 3) Regulations 2024 reg. 3 · Effective date unknown · s. 205

s. 206 coming into force by The Economic Crime and Corporate Transparency Act 2023 (Commencement No. 3) Regulations 2024 reg. 3 · Effective date unknown · s. 206

Sch. 13 para. 1 coming into force by The Economic Crime and Corporate Transparency Act 2023 (Commencement No. 3) Regulations 2024 reg. 3 · Effective date unknown · Sch. 13 para. 1

Sch. 13 para. 2 coming into force by The Economic Crime and Corporate Transparency Act 2023 (Commencement No. 3) Regulations 2024 reg. 3 · Effective date unknown · Sch. 13 para. 2

Sch. 13 para. 3 coming into force by The Economic Crime and Corporate Transparency Act 2023 (Commencement No. 3) Regulations 2024 reg. 3 · Effective date unknown · Sch. 13 para. 3

Sch. 13 para. 4 coming into force by The Economic Crime and Corporate Transparency Act 2023 (Commencement No. 3) Regulations 2024 reg. 3 · Effective date unknown · Sch. 13 para. 4

Sch. 13 para. 5 coming into force by The Economic Crime and Corporate Transparency Act 2023 (Commencement No. 3) Regulations 2024 reg. 3 · Effective date unknown · Sch. 13 para. 5

Sch. 13 para. 6 coming into force by The Economic Crime and Corporate Transparency Act 2023 (Commencement No. 3) Regulations 2024 reg. 3 · Effective date unknown · Sch. 13 para. 6

Provenance

Every claim the system makes about this text is traceable to these identifiers.

Instrument: uk:ukpga/2023/56
Part: PART 1 Companies etc
Version: 664e84c83cc825cc46857316…
Content hash: sha256 0221ef0690283afacc672fa0…
Source: legislation.gov.uk/ukpga/2023/56