New guidance: Guidance published to help directors avoid competition law breaches

Directors of companies of all sizes will welcome new guidance from the Competition and Markets Commission (CMA) to help them avoid disqualification, and other sanctions for breaching UK competition law.

If a UK company has breached competition law, the CMA has powers to apply to court to disqualify any directors involved for a maximum of 15 years, or accept an undertaking from them not to act as a director.

This power was exercised for the first time in late 2016 when a director of a small online poster business was targeted following a breach of UK competition law. The CMA accepted an undertaking from the director that he would not act as a director of his, or any other, UK company, or in any way be concerned or take part in the promotion, formation or management of a UK company, for five years.

The guidance, Avoiding disqualification: advice for company directors, is a simple but helpful document which is part of a series of CMA guides on UK and EU competition law.

Operative date

  • Now

Recommendation

  • Companies can download the CMA guidance from the GOV.UK website

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