Section 2: Unfit directors of dissolved companies: Great Britain
Section 2 amends certain sections of CDDA86 to provide a power to the Secretary of State and the official receiver to investigate the conduct of former directors of dissolved companies, for the Secretary of State to seek their disqualification where appropriate, and to seek compensation where their actions have led to losses to creditors of dissolved companies.
	Section 6 of CDDA86 is amended to increase its scope to include former directors of dissolved companies. In particular, section 6(1) is amended so that if the court is satisfied on application that the person was a director of an insolvent company, or was a former director of a company which was dissolved without becoming insolvent, and their conduct as a director of that company (either taken alone or considered along with their conduct in other companies) makes them unfit to be concerned in the management of a company, it has a duty to make a disqualification order. Section 6(3) is amended to provide the court with jurisdiction to make a disqualification order in a case that concerns a former director of a dissolved company is the court which would have had jurisdiction to wind it up on the date of dissolution.
	Section 7(2) of CDDA86 is amended so that where an application for a disqualification order is made by the Secretary of State in respect of a former director of a dissolved company, it may not be made after the period which is 3 years beginning on the day that the company was dissolved. Section 7(4) is amended so that the Secretary of State or the official receiver may require any person to provide information or documentation which relates to the conduct of a person who was a former director of a dissolved company, as may be reasonably required.
	Section 8ZB(2) of CDDA86 is amended so that where a disqualification application is made by the Secretary of State under section 8ZA (in the circumstances that the person in respect of whom the disqualification application is made influenced the actions of a disqualified former director of a dissolved company), the period within which such an application may be made is 3 years starting with the date on which the company in question was dissolved.
	Section 15A of CDDA86 is amended so that compensation may be sought where a former director of a dissolved company’s conduct in that company may be considered when seeking compensation for losses to creditors.
	Sections 22A to 22H of CDDA86 apply that Act to:
Building societies within the meaning of the Building Societies Act 1986
Incorporated friendly societies within the meaning of the Friendly Societies Act 1992
NHS foundation trusts
Registered societies within the meaning of the Co-operative and Community Benefit Societies Act 2014
Charitable incorporated organisations
Further education bodies
Protected cell companies incorporated under Part 4 of the Risk Transformation Regulations 2017.
	Those sections of the CDDA86 are amended so that references to dissolved companies do not apply when the Act is being applied to those bodies.
	Section 2 also provides that the conduct which may be investigated and considered as a result of the amendments to the CDDA86 made by that section, includes that which occurred in companies which were dissolved prior to commencement, and that which occurred prior to commencement in companies which were not dissolved at that time.