Competition & Markets Authority
CMA Statement on design, construction and fit-out services director disqualification
Individual directors should be held accountable if their company breaks competition law.
For this reason, the CMA has, since December 2016, secured the disqualification of 12 directors where their companies have broken competition law, in 4 separate cases. The CMA is intensifying its programme of disqualifications: 9 of the 12 disqualifications have been secured in this year alone.
The CMA notes the court’s decision that, subject to strict conditions, in the particular circumstances of this case two of the disqualified directors may continue to act as directors of certain companies in the Fourfront Group and carry out specified functions during their term of disqualification.
The CMA welcomes the court’s finding that permission to continue acting as a director is not a formality and should not be given readily and notes the judge’s comment that he did not easily reach this decision.
Importantly the underlying director disqualifications remain in place. While they apply the two directors may not take on the directorship of any other company. The court’s permission is conditional and relates only to certain companies in the Fourfront Group.
In the particular circumstances of this case, the court was satisfied that permission should be granted because of the particular needs of the companies concerned. It also put in place strict conditions, including Fourfont Group retaining an independent non-executive director responsible for supervising the group’s compliance with competition law.
Director disqualifications remain an essential measure to protect the public from directors of companies that break competition law, and send a clear message to directors of the need to ensure that their companies comply fully with competition law. We will continue to seek further disqualifications of directors where appropriate.
Latest News from
Competition & Markets Authority
Guitar maker fined £4.5m for illegally preventing price discounts23/01/2020 09:20:00
The CMA has fined Fender Europe £4.5 million for breaking competition law by preventing online discounting for its guitars.
CMA publishes loyalty penalty update22/01/2020 12:20:00
The CMA has reported on the progress made in tackling the loyalty penalty that impacts millions of people.
Court of Appeal upholds CMA decision on online sales21/01/2020 14:43:00
The Court of Appeal has upheld the CMA’s finding that a golf equipment supplier acted illegally by banning online sales of its products.
Facebook and eBay pledge to combat trading in fake reviews09/01/2020 09:20:00
Following action from the CMA, Facebook and eBay have committed to combatting the trade of fake and misleading reviews on their sites.
Illumina/PacBio abandon merger03/01/2020 10:20:00
Illumina has abandoned its anticipated $1.2 billion takeover of PacBio after an in-depth CMA merger probe highlighted serious competition concerns.
LN-Gaiety’s purchase of MCD cleared by CMA20/12/2019 12:20:00
An in-depth CMA investigation has found that Live Nation-Gaiety’s proposed purchase of MCD does not raise competition concerns.
CMA lifts the lid on digital giants18/12/2019 13:20:00
The CMA has published an update in its examination of online platforms and digital advertising, uncovering new detail about how the sector’s biggest names operate.
Estate agents fined over half a million pounds for price fixing18/12/2019 09:10:00
3 Berkshire estate agents have been fined more than £600,000 for illegally fixing the minimum commission rates they charged their customers.