We have had provisions in place for directors to be disqualified where there has been a breach of competition law since 2003, when the Company Directors Disqualification Act 1986 (CDDA) was amended by the Enterprise Act 2002. However, we have not yet had any directors actually disqualified on the back of it.
The Competition and Markets Authority has now secured a the first director's disqualification via undertaking using these (relatively) new provisions. This gives another sanction for breach of competition legislation, in addition to fines and civil sanctions, such as contracts being voidable or unenforceable. Directors of companies large and small should ensure compliance with competition legislation to ensure that they do not get caught up.
Daniel Aston, managing director of the online poster supplier Trod Ltd, has given a disqualification undertaking not to act as a director of any UK company for 5 years. The Competition and Markets Authority (CMA) may, under the Company Directors Disqualification Act, seek the disqualification of an individual from holding company directorships where that individual has been director of a company which has breached competition law.