Part 1: Companies House Reform Disqualification in relation to companies Section 31: Disqualification for persistent breaches of companies legislation: GB
This section amends section 3 (disqualification for persistent breaches of companies legislation) of the Company Directors Disqualification Act 1986 ("CDDA 1986") to allow for the disqualification of directors in Great Britain on the grounds of "persistent breaches" of "relevant provisions of the companies legislation". A person may be disqualified if in preceding 5 years he has been adjudged guilty of three or more "defaults".
	Section 31(4) amends section 3 of the CDDA 1986 so that the imposition of a financial penalty can also count as a "default", whether imposed under section 1132A of the Companies Act 2006 or under section 39 of the Economic Crime (Transparency and Enforcement Act) 2022.
	The "relevant provisions of the companies legislation" relate to non-compliance with filing obligations and directors’ and People with Significant Control’s identity verification requirements as set out in section 31(5). Currently only the conviction of an offence can lead to disqualification.
	The meaning of "the companies legislation" is amended by section 29(6) to include the Companies Acts, Parts A1 to 7 of the Insolvency Act 1986 (company insolvency and winding up), and Part 1 of the Economic Crime (Transparency and Enforcement) Act 2022 (registration of overseas entities). This ensures any offence committed under "the companies legislation" can count as a "default".