Section 17 of the Company Directors Disqualification Act 1986 lets you apply to the court for permission to act as a director of a named company despite an existing director disqualification, but permission is discretionary and never automatic.
If you want to apply for permission to act as a company director while disqualified, you must show a genuine need for the specific company named in your application, together with adequate safeguards to protect creditors and the public. Preparing that evidence properly, and being fully transparent about your original misconduct, is vital, as is taking expert legal advice from an experienced Insolvency Law Solicitor.
Summary
- What section 17 permission allows you to do
- What the court must be satisfied of before granting permission
- How to make a section 17 application
- What evidence strengthens your application
- Conditions if permission is granted
- Can you apply for Interim Permission?
What Section 17 Permission Allows You to Do
Section 17 of the Company Directors Disqualification Act 1986 lets you apply to the court for leave to act as a director of, or take part in managing, a specific named company or companies during your disqualification.
For you, this does not remove or shorten your disqualification. It carves out a narrow, court approved exception for named companies only. If your circumstances change later and you need to act for a different company, you must make a fresh application, since permission granted under section 17 applies only to the companies specified in the order.
If you are weighing up whether to apply for section 17 permission or instead, focus on challenging the underlying disqualification, our guide on how to challenge director disqualification sets out the grounds and evidence needed to contest a ban.
What Factors Does the Court Consider?
The court’s discretion when it comes to granting an application is very broad, and this was noted in Re Dawes & Henderson (Agencies) Ltd (No 2) [1999] 2 BCLC 317. You must satisfy the court that there is a genuine need to remain a director, and that the public and creditors would remain adequately protected if leave were granted. Simply wanting to stay involved with a company you set up does not, on its own, amount to a genuine need.
The court weighs several factors when deciding your application:
- The seriousness and type of conduct that led to your disqualification
- The risk that similar conduct could happen again
- The trading prospects of the company or companies you have named
- Whether the company is up to date with its tax and filing obligations
- Whether you can offer credible safeguards, such as independent financial oversight
The burden of proving each of these points rests with you as the applicant and the test is on the balance of probabilities. The Secretary of State must appear at the hearing under section 17(5) of the Company Directors Disqualification Act 1986, but takes a neutral stance rather than actively opposing or endorsing your application.
How Do You Make a Section 17 Application?
You make a section 17 application as a standalone civil claim, using Form N208, filed at the appropriate court and served on the Secretary of State.
Your application must identify the specific company or companies concerned, explain why your involvement is essential rather than simply desirable, and set out the safeguards you propose to prevent a repeat of the conduct that led to disqualification.
You can generally make the application at any point during your disqualification period, but if you delay significantly, you will need to explain why.
What Evidence Strengthens Your Application?
The court expects detailed, orderly evidence covering:
- Your business background
- The misconduct that led to your disqualification
- Why your continued involvement is necessary
- The safeguards you propose.
Supporting documents such as business plans, financial statements, tax records, and professional references will need to be presented. Your solicitor will help you collate these.
Court Attached Conditions
Where the court does grant you leave, it may impose stringent conditions designed to prevent a repeat of your original conduct and protect the public from further misconduct.
Conditions imposed may include:
- Restrictions on borrowing or financial commitments the company can enter into
- Independent financial oversight or co-signatory arrangements
- Time-limited permission, requiring you to reapply after a set period
- Regular reporting obligations to the court or an appointed supervisor
The court has a broad discretion and can impose any conditions it deems necessary to protect the public.
What Happens If You Act Without Permission?
Acting as a director, or taking part in managing a company, while disqualified and without the court’s permission is a criminal offence under section 13 of the Company Directors Disqualification Act 1986, carrying up to two years’ imprisonment on indictment, or up to six months on summary conviction, together with a fine.
You also become personally liable for any debts the company incurs while you are involved, under section 15 of the Company Directors Disqualification Act 1986.
Section 40 of the Economic Crime and Corporate Transparency Act 2023 inserted two key provisions into the Companies Act 2006:
- section 159A – provides that the appointment of a disqualified person as a director is void
- section 169A – ensures that if a person who is already a director becomes disqualified, their directorship automatically terminates.
Can You Apply for Interim Permission?
Yes. Where you are at immediate risk of breaching your ban, for example while an appeal against a fresh disqualification is still pending, a section 17 application can ask the court for interim permission while the full application is considered.
Interim permission is not guaranteed and is itself subject to conditions. In Wilson v Secretary of State for Business and Trade [2025] EWHC 691 (Ch), interim permission was granted to a disqualified director in November 2024, subject to conditions such as timely payment of taxes. However, the director breached these conditions by failing to pay VAT and PAYE on time and lied about compliance. These breaches led to the subsequent withdrawal of permission at the final hearing in February 2025.
Given the time pressure involved, you should have your section 17 application ready to file as soon as it becomes clear that your involvement in a company’s management might otherwise breach your disqualification. In addition, your application for interim permission must also be served on the Secretary of State, who will provide their opinion to the court.
What Should You Do Next?
If you are disqualified and need to continue, or resume, involvement with a specific company, your section 17 application needs complete and accurate evidence from the outset.
Our Director Disqualification Solicitors in England and Wales regularly advise directors on section 17 applications, including interim permission where time is short, and represent clients at the hearing itself.
Call us on 0300 303 2071 or fill in our enquiry form to arrange a confidential first conversation.
FAQs
Do I Need to Name a Specific Company in My Section 17 Application?
Yes. The court only grants permission for companies specifically named in your application, and blanket permission covering any future company is not available. If you later need to act for a different company, you must make a fresh application.
Can I Get Permission While My Disqualification Appeal is Still Pending?
Yes, in urgent cases you can use a section 17 application to seek interim permission to continue acting while disqualified, pending a full hearing, particularly where a strict appeal deadline is close. As Wilson v Secretary of State for Business and Trade [2025] EWHC 691 (Ch) shows, interim leave granted at an early stage can still be withdrawn once the full application is examined.
What Happens If the Court Refuses My Section 17 Application?
If permission is refused, you must not act as a director or take part in managing the named company for the rest of your disqualification. Doing so exposes you to criminal liability under section 13 of the Company Directors Disqualification Act 1986 and personal liability for company debts under section 15.
Does the Secretary of State Have to Agree to My Section 17 Application?
No. Under section 17(5) of the Company Directors Disqualification Act 1986, the Secretary of State must appear at the hearing but takes a neutral stance and cannot formally consent to your application. The decision rests entirely with the judge, based on the evidence you present.
How Long Does a Section 17 Application Take to Resolve?
Timescales vary depending on the complexity of your evidence and whether the Secretary of State raises concerns, but applications are generally heard alongside or shortly after the underlying disqualification proceedings conclude. Preparing detailed, accurate evidence from the outset is the most effective way to avoid delay.
Last reviewed: August 2026
