Disqualification order granted against Jersey company director

In the recent judgment of In the Matter of the SPARC Group Limited (en désastre) [2022] JRC 194, the Royal Court of Jersey considered the appropriate test for the making of a disqualification order against a director, with a disqualification order being made on the facts of the case. The order was made in circumstances where that director’s conduct had fallen short in failing to assist the Viscount in dealing with the aftermath of a declaration of désastre (ie insolvency) in respect of the relevant company. This briefing considers the relevant principles for directors’ disqualification, in the particular context of the désastre regime, whilst also traversing directors’ duties in the context of insolvency in the context of the recent Supreme Court decision in BTI v Sequana and the options which may be open to shareholders where company directors are falling short.