In addition to its powers to investigate and prosecute individuals for cartel offences, the Competition & Markets Authority (‘CMA’) has the power to apply for Company Director Disqualification Orders (‘CDDOs’).

A CDDO can significantly impact a director’s professional and personal life. It legally prohibits the individual from acting as a director or being involved in the management, promotion, or formation of a company for a specified period of  up to 15 years. Being made the subject of a CDDO can therefore damage an individual’s  reputation, limit future career opportunities, and affect their ability to hold similar positions in the UK and, in some cases, abroad. It may also lead to increased scrutiny in any future business dealings and could result in personal financial consequences if they are held liable for company misconduct.

Since May 2019, when the CMA announced its intention to make broader use of CDDO powers, there has been a noticeable increase in the consideration of CDDOs as a potential enforcement tool.

This is consistent with our recent experience of company directors being invited to attend interviews with the CMA on a voluntary basis, rather than ‘under caution’ as would be the case if the CMA suspected participation in a criminal cartel.

Participation in a CMA investigation should be taken very seriously and specialist advice taken. In particular, the CMA’s focus on cooperation as a condition of leniency means that the steps taken in the early stages of an investigation can have a huge effect on the final outcome.

We regularly advise individuals who are involved in investigations by the CMA including those potentially facing CDDOs.