Definition: is the process of removing an individual that holds the office as a director from his position in case he didn’t uphold his legal responsibilities. The list of possible disqualification reasons includes personal insolvency, bankruptcy, and a court order relating to fraud. Ordinarily, the disqualification of a director lasts for a period of five years or until the end of his prison sentence. During that time, the banned individual can’t become the director of a firm or be involved with the creation or management of an organization.
In a Sentence:
After being issued a debt relief order, the board conducted a disqualification of directors meeting to fire Mr. Hendricks from his post.
The disqualification of directors took place after it was revealed that several directors were involved in fraudulent trading.
They’re risking receiving a disqualification of directors if they fail to submit their annual returns to the Companies House by tomorrow.
Synonyms and related words: disqualification order, fraud, unfit conduct, dismissal of directors, company director