UK Government Imposes New Director Disqualification Sanctions: Key Updates and Implications

On 9 April 2025, the UK Government updated its sanctions list, adding the designations of 2996 individuals and 818 entities across 28 UK autonomous and mixed sanctions regimes. These newly designated individuals and entities are now subject to Director Disqualification Sanctions, which carry significant legal consequences.

Impact of Director Disqualification Sanctions

Under these sanctions, individuals who are designated are prohibited from:

• acting as a director of a UK company;
• holding a directorship in a foreign company with substantial UK connections, such as those conducting business or possessing assets in the UK, regardless of registration; and
• participating in the promotion, formation or management of a company.

This ban extends across England, Wales, Scotland and Northern Ireland, enforced through the <span class="news-text_italic-underline">Company Directors Disqualification Act 1986</span> and related legislation for Northern Ireland. Violation of these sanctions constitutes a criminal offence. Anyone contravening a director disqualification sanction is committing a criminal offence. Anyone with director disqualification sanctions made against them are listed on the <a href="https://www.gov.uk/government/publications/the-uk-sanctions-list" target="_blank" class="news-text_link">UK sanctions list</a>.

Apply for a licence

Affected individuals may apply for a licence from the Insolvency Service to carry out otherwise prohibited activities. However, it is a criminal offence for a person to provide misleading information or documents when applying for a licence. It is an offence for licence-holders to:

• ignore the conditions listed on the licence
• do anything that is not specified by THE licence permission
• do anything banned by director’s disqualification sanctions without an exception

Investigation and enforcement

The Insolvency Service is responsible for investigating and prosecuting individuals who are suspected of breaching director disqualification sanctions and licensing offences. A person found guilty of breaching director disqualification sanctions and/or a licensing offence can be fined and/or go to prison for up to 2 years. The Insolvency Service can also refer cases to other law enforcement agencies for prosecution. Anyone suspected of breaching their director disqualification sanction or licence terms can be reported to the Insolvency Service.

These new sanctions reinforce the UK’s commitment to upholding the integrity of its corporate governance system and are part of its broader foreign policy and legal framework.