A director may be disqualified for up to how many years for persistent breach of the Companies Act 2006?

Study for the ICAEW ACA Certificate Level - Law Test. Dive into multiple choice questions and detailed explanations to prepare effectively. Get ready for your exam!

A director can be disqualified for up to 5 years for persistent breach of the Companies Act 2006. This provision serves as a measure to ensure that individuals who hold directorship positions adhere to the regulatory framework outlined in the Act, which governs the conduct and responsibilities of company directors in the UK.

Persistent breaches typically refer to a series of violations that demonstrate a disregard for the legal obligations imposed by the Companies Act. Such an approach helps maintain the integrity of corporate governance and protects both the interests of shareholders and the public. The five-year disqualification period reflects the seriousness with which these breaches are viewed, aiming to deter future misconduct and promoting accountability among company directors. This period allows time for reflection and the potential for rehabilitation, which is consistent with the purpose of disqualification orders in corporate law.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy