Enterprise and Entrepreneurship: The Impact of Director Disqualification

Caroline Bradley

jcls Vol 1 Issue 1 (August 2001)

Click Here to download the complete article

Abstract

This article examines the relationship between business organisation law and policies designed to encourage entrepreneurial activity. In particular the article focuses on the UK's regime for disciplining directors of failed companies, and notes that the United States does not have comparable rules. In the United States, director disqualification is designed to protect investors, as part of the protections necessary for the capital markets, whereas in the United Kingdom director disqualification is designed to protect creditors. The United States tends to rely on private, rather than public, mechanisms for the protection of creditors.

Keywords

UK, US, company law, creditor protection, disqualification of directors, entrepreneurship, failed companies, investor protection