What conduct can give rise to a finding of “unfitness” under section 6 of the Company Director Disqualification Act 1986?

The following are common grounds in alleged unfitness in respect of the liquidated company:

• Conducting a policy of deliberately not paying HMRC debts
• Failure to keep maintain, preserve or deliver up proper accounting records
• Trading to the detriment of creditors generally or specific creditors – this normally involves demonstrating a policy of non-payment of certain creditors;
• Paying one creditor in priority to others when insolvency is imminent;
• General public interest breaches including mis-selling or misrepresenting sales to customers or retaining customer deposits;
• Wrongful trading of the company [Section 214 Insolvency Act 1986];
• Fraudulent trading [Section 213 Insolvency Act 1986];
• Trading in breach of legal and regulatory requirements – for example being involved in financial services schemes without having proper authority to provide such services by the FSA;
• Misapplication or retention of company money or property, either for less than the market value or for no consideration;
• Failing to prepare/file annual accounts or any other statutory returns to Companies House;
• Failing to deliver up company documents and property.