Gunn may face up to two years of legal uncertainty

Click to follow
The Independent Online
JOHN GUNN and five other former executives of British & Commonwealth face up to two years of uncertainty before the Department of Trade and Industry has to bring its court action to disqualify them as directors, writes John Willcock.

Under the Companies Act 1985, timing for the civil action depends largely on the availability of a suitable court in London. Mr Gunn says the DTI has taken its time over such proceedings in several recent cases and is worried that the uncertainty will be protracted.

The ban on directorships is sweeping in its scope. It stops individuals from participating in the formation, running and promotion of any company, including private and public companies.

Former directors may not 'in any way, directly or indirectly, be concerned or take part in the promotion, formation or management of a company'. The ban does not cover Germany, however, where Mr Gunn, who is fluent in the language, has been involved in a number of businesses.

The process starts with the DTI applying to the High Court for a disqualification action, followed by a hearing in which the DTI presents its case.

View from City Road, page 13