Director disqualification sanctions
General guidance about director disqualification sanctions, what they mean and how to apply for a licence.
For more detailed information, read the statutory guidance for each of the UK’s sanction regimes.
Director disqualification sanctions
Sanctions are a legal way the UK government can deter and disrupt threats as part of its wider foreign policy.
Under the Sanctions and Anti-Money Laundering Act 2018, Section 3A enables legislation to make director disqualification sanctions.
The effect of director disqualification sanctions
Individuals who are subject to director disqualification sanctions are banned directly or indirectly from:
- being a director of a UK company
- being a director of a foreign company that has sufficient connection to the UK, even if it is not registered here. For example, if it carries out business or has assets here
- taking part in or being concerned in the promotion, formation or management of a company
unless a licence has been issued or there is an exception in place.
The ban applies to England, Wales, Scotland and Northern Ireland under the following legislation:
- section 11A of the Company Directors Disqualification Act 1986
- article 15A of the Company Directors Disqualification (Northern Ireland) Order 2002
You will have breached director disqualification sanctions, if you do something that is banned by them.
More information on the effect of a disqualification.
UK Sanctions list
Anyone with director disqualification sanctions made against them are listed on the UK sanctions list. The list also specifies which sanctions apply.
Apply for a licence
You can apply to the Insolvency Service for a licence to carry out acts that are prohibited by director disqualification sanctions.
Find out more about how to apply for a licence.
Licencing offences
It is illegal for a person to provide misleading information or documents when applying for a licence.
If you hold a licence, it is illegal to:
- ignore the conditions listed on the licence
- do anything that is not specified by your licence permission
- do anything banned by director disqualification sanctions without an exception
Investigation and enforcement
The Insolvency Service is responsible for investigating and prosecuting individuals who are suspected of breaching director disqualification sanctions and licensing offences.
If you’re found guilty of breaching director disqualification sanctions and/or a licencing offence, you can be fined and/or go to prison for up to 2 years.
The Insolvency Service can also refer cases to other law enforcement agencies for prosecution.
More information about our investigation and enforcement work.
Report a disqualified director to the Insolvency Service
You can report a disqualified director for breaching their sanctions or licence terms to the Insolvency Service.