Section 56

on the application of the Minister or the Official Receiver as provided for in section 149(9) of the Companies Act 1967 as applied by subsection (11); and

on being satisfied as to the matters in subsection (2),make an order (called in this section a disqualification order), which must not in any case exceed 5 years after the date of the disqualification order disqualifying a person specified in the order from being a director or in any way (whether directly or indirectly) being concerned in, or take part in, the management of a VCC during such period as is specified in the order.

the person is or has been a director of a VCC which has at any time gone into liquidation (either while he or she was a director or within 3 years of his or her ceasing to be a director) and was insolvent at that time;

the conduct of the person as director of that VCC (either taken alone or together with his or her conduct as a director of any other VCC or corporation) makes him or her unfit to be a director of or in any way (whether directly or indirectly) be concerned in, or to take part in, the management of a VCC; and

the person has been given at least 14 days’ notice of the application.

in the case of a person who is or has been a director of a VCC which is being wound up by the Court, it appears to the Official Receiver or the liquidator (if the liquidator is not the Official Receiver); or

in the case of a person who is or has been a director of a VCC which is being wound up otherwise than as mentioned in paragraph (a), it appears to the liquidator,that the conditions mentioned in subsection (2)(a) and (b) are satisfied as respects that person, the Official Receiver or the liquidator (as the case may be) must immediately report the matter to the Minister.

to provide the Minister with such information of any person’s conduct as a director of the VCC; and

to produce any books, papers and other records relevant to that person’s conduct as such a director,as the Minister may reasonably require for the purpose of determining whether to exercise, or of exercising, any of the Minister’s functions under this section.

a VCC has gone into liquidation —

if it is wound up by the Court — on the date of the filing of the winding up application;

if a provisional liquidator was appointed under section 291(1) of the Companies Act as applied by section 130 — at the time when the declaration made under that provision was lodged with the Registrar; and

in any other case — on the date of the passing of the resolution for the voluntary winding up;

a VCC was insolvent at the time it has gone into liquidation if it was unable to pay its debts, within the meaning of section 254(2) of the Companies Act as applied by section 130; and

a reference to a person’s conduct as a director of any VCC or other corporation that has become insolvent includes that person’s conduct in relation to any matter connected with or arising out of the insolvency of that VCC or corporation.

must have regard generally to the matters mentioned in subsection (8); and

must have regard particularly to the matters mentioned in subsection (9),regardless of whether or not the director has been convicted or may be criminally liable in respect of any of these matters.

whether there has been any misfeasance or breach of any fiduciary or other duty by the director in relation to the VCC;

whether there has been any misapplication or retention by the director of, or any conduct by the director giving rise to an obligation to account for, any money or other property of the VCC; and

the extent of the director’s responsibility for any failure by the VCC to comply with —

section 138, 191 or 199 of the Companies Act 1967 as applied by section 42, 81(7) or 99, as the case may be;

section 81(1) to (6) or 97; or

section 100, and the provisions of section 201 of the Companies Act 1967 as applied by section 100.

the extent of the director’s responsibility for the causes of the VCC becoming insolvent;

the extent of the director’s responsibility for any failure by the VCC to supply any goods or services which have been paid for (in whole or in part);

the extent of the director’s responsibility for the VCC entering into any transaction liable to be set aside under section 259 of the Companies Act as applied by section 130; and

whether the causes of the VCC becoming insolvent are attributable to the VCC carrying on business in a particular industry where the risk of insolvency is generally recognised to be higher.