The regime under which a person can be disqualified from acting as a director or prevented from being involved in the management of a company has been strengthened by new provisions which came into force at the beginning of October. One of the most significant changes enables the court to order a disqualified director to compensate creditors who have suffered a loss as a result of the director's conduct. The court will have two years from the date of disqualification within which to impose a compensation order. A director could be required to contribute to the assets of the company of which he or she was a director or to make a payment directly for the benefit of a specified creditor (or class of creditors).
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