Bankrupt company director

An individual who is a company director (while not bankrupt) becomes bankrupt while in office.

Is he permitted to remain a company director?  If not, is he automatically struck of the company's list of directors or does he remain a director until someone (presumably the trustee in bankruptcy) removes him?

In our office the general thought is that he is not permitted to remain a company director, but if that is the general case, why is it common practice (and I believe it to be the case) that a shareholder's agreement normally requires that a director resign if he is declared bankrupt?  Such a clause appears superfluous if he is not permitted to remain a director anyway under other legislative provisions.

Thanks for any insight.

With kind regards

Clint Westwood

Comments
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One for the hair splitters

ChrisDL |

Thanks

nogammonsinanundoubledgame |
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yes

Anonymous |

So, just to clarify,

nogammonsinanundoubledgame |
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as I understand it

Anonymous |

thanks

nogammonsinanundoubledgame |
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Company Directors Disqualification Act 1986

davidwinch |
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