# Conviction for fraud disqualification as co. director



## elainem (15 Aug 2010)

A relative of mine is setting up a limited company with a guy who has a conviction for fraud - got it about 5 years ago I think. Don't know why my relative is even thinking of this! I thought that once anyone had a conviction for fraud, they could not be a company director for a certain length of time. Is this correct or not? Thanks.


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## Dachshund (15 Aug 2010)

Taken from the ODCE website. Specifically [broken link removed].

"To protect the public, some people cannot be directors at certain times.
These include bankrupts, who are prohibited from being directors while
their debts remain unpaid or until a court excuses them from paying
those debts. *People whom a court has found guilty of fraud or serious
misconduct may also be disqualified from acting as directors for a
certain period.* If a person is found by a court to have acted dishonestly
or irresponsibly in a company that failed to pay its debts, the court may
restrict them. A restricted director can only act as a director in certain
companies in which the members have invested a significant amount of
money. *Restrictions are normally for a period of five years.*"

The ODCE have a list of disqualified Directors on their site [broken link removed]. You could search for the person concerned.


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## elainem (15 Aug 2010)

*Disqualificationo f company directors*

Thanks Daschhund. I don't see the guys name on the list of disqualified directors. I think his conviction was for fraud at his workplace. Still think its mad that my relative wants to do business with this guy! Maybe people do learn their lesson, or maybe they might be as easily tempted the next time. What happens if the conviction is criminal - does that definitely lead to disqualification?


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## Joe Q Public (15 Aug 2010)

Unless you complain to the ODCE nothing will happen. *A conviction for fraud does not automatically disqualify a person from being a director.* It is up to the ODCE to take action.


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