Part 1: Companies House Reform Company formation Section 6: Persons with initial significant control: disqualification
This section amends section 12A of the Companies Act 2006 (statement of initial significant control) to require that applications to register a company include a statement that none of the proposed registerable persons or registrable Relevant Legal Entities (RLE) are disqualified under directors disqualification legislation.
	Part 21A of the Companies Act 2006 contains provisions concerning persons with significant control over companies (section 790C(2)-(4)) and relevant legal entities that have significant control over companies (section 790C(5)-(8)). Persons with initial significant control and relevant legal entities are defined in section 12A(4) as registrable persons and registrable RLEs respectively.
	Proposed registrable persons or registrable RLEs who are disqualified under directors’ disqualification legislation but have either a court’s permission or the authority of a licence under section 15(3A)(a) of the Sanctions and Anti-Money Laundering Act 2018 ("SAMLA 2018") to act as director must include a statement to that effect in the application specifying particular details of the permission or licence. The Registrar will accept applications to register companies if this is the case.
	The definition of a disqualified person is provided in section 159A(2) of the Companies Act 2006. It covers persons disqualified under the Company Directors Disqualification Act 1986 and the Company Directors Disqualification (Northern Ireland) Order 2002.. It concerns not only persons subject to disqualification orders and undertakings, but also: undischarged bankrupts, persons subject to bankruptcy restrictions order or undertakings, debt relief restrictions orders or undertakings and moratoriums under the debt relief orders, as well as persons subject to director disqualification sanctions under the SAMLA 2018.