(2) For the purposes of this section and the next, a company becomes insolvent if—
- (a) the company goes into liquidation at a time when its assets are insufficient for the payment of its debts and other liabilities and the expenses of the winding up,
- (b) an administration order is made in relation to the company, or
- (c) an administrative receiver of the company is appointed;
and references to a person’s conduct as a director of any company or companies include, where that company or any of those companies has become insolvent, that person’s conduct in relation to any matter connected with or arising out of the insolvency of that company.
(3) In this section and the next “the court” means—
- (a) in the case of a person who is or has been a director of a company which is being wound up by the court, the court by which the company is being wound up,
- (b) in the case of a person who is or has been a director of a company which is being wound up voluntarily, any court having jurisdiction to wind up the company,
- (c) in the case of a person who is or has been a director of a company in relation to which an administration order is in force, the court by which that order was made, and
- (d) in any other case, the High Court or, in Scotland, the Court of Session;
and in both sections “director” includes a shadow director.
(4) Under this section the minimum period of disqualification is 2 years, and the maximum period is 15 years.
Applications to court under s. 6; reporting provisions. 7.—(1) If it appears to the Secretary of State that it is expedient in the public interest that a disqualification order under section 6 should be made against any person, an application for the making of such an order against that person may be made—
- (a) by the Secretary of State, or
- (b) if the Secretary of State so directs in the case of a person who is or has been a director of a company which is being wound up by the court in England and Wales, by the official receiver.
(2) Except with the leave of the court, an application for the making under that section of a disqualification order against any person shall not be made after the end of the period of 2 years beginning with the day on which the company of which that person is or has been a director became insolvent.
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