The OFT has published its revised guidance on director disqualification orders in competition law cases.
The guidance sets out how and when the OFT will take action to disqualify directors where they uncover evidence a director was responsible for, or ought to have known of, competition law breaches at a company. It follows widespread consultation with the legal and business community.
The guidance makes clear that the OFT will be just as concerned with directors who ought to have known of competition law breaches at a company as those who were personally involved in an infringement. Cases will be chosen based on the evidence available and seriousness of the conduct.
The OFT will continue to offer immunity from disqualification orders for any director who cooperates with the OFT's investigation and whose company benefited from leniency in respect of the same activities. However, there may be exceptional cases where the OFT believes it is appropriate to apply for a disqualification order where there is no prior decision or judgment on the infringement. However, as with all cases, the OFT would still have to satisfy the court that there had been an infringement of competition law.
Cavendish Elithorn, OFT's Senior Director of Policy, is quoted in the OFT’s press release as stating:
“the prospect of being disqualified as a director is one of the most powerful deterrents to anti-competitive behaviour across boardrooms and companies of all sizes. Today's guidance should be taken as a clear message that we will actively seek disqualification of directors found to have engaged in anti-competitive behaviour or who ought have known it was going on.
Any director who suspects their company has been involved in cartel activities should take urgent steps to ensure their company approaches the OFT or European Commission for leniency at the earliest opportunity.”
Click here for the OFT guidance.
