Fit and proper person test

The fit-and-proper-person test or director's test is a test undergone by owners and directors of major British football clubs in the hope that it prevents corrupt or untrustworthy businessmen from buying them, or, since November 2014 the test was introduced into the National Health Service in England for board members of NHS Trusts as a result of the Health and Social Care Act 2008 (Regulated Activities) Regulations 2014.

Application to the National Health Service

Directors of NHS Trusts can be deemed unfit if they have been involved in “serious misconduct or mismanagement”. The test is supervised by the Care Quality Commission but decisions are made by individual trusts.

A Trust must be satisfied that its directors are:

A trust must not “appoint or have in place” a director who has been responsible for, privy to, contributed to or facilitated any serious misconduct or mismanagement (whether unlawful or not) in the course of carrying on a regulated activity.[1]

The CQC received referrals from campaigners and whistleblowers in January 2015 which alleged that more than 20 current and former NHS chief executives, medical directors and senior board level executives were unfit for their roles.[2]

Application in Football

Stephen Vaughan fell foul of the test

The test, introduced in 2004, is mandated by the Premier League, the Football League, the Football Conference and the Scottish Premier League. Anybody who takes over a club, runs one, or owns over 30% of its shares must be assessed. The first director known to have failed the test was Dennis Coleman, director of Rotherham United when they went into administration in 2006 and 2008. He claimed:

"I came in and in effect saved the club. It is totally unfair for me to be disqualified."[3]

In November 2009, Stephen Vaughan, then owner of Chester City, became the first owner to fail the test, after he was legally disqualified from being a director of any company. This was a result of VAT fraud as owner of Widnes Vikings rugby club. He transferred control of Chester to his son, Stephen Vaughan, Jr.[4]

In March 2012, Rangers owner Craig Whyte was found not to be a fit and proper person as the result of an independent enquiry.[5]

In June 2014, Louis Tomlinson, former footballer and member of the boy band One Direction, and John Ryan, businessman and previous Chairman of Doncaster Rovers, launched a bid to buy the club but one month later Ryan was found not to be a fit and proper person due to a lack of funding.[6]

Disqualifying events

The Premier League has tighter restrictions than the rest of the Football League and Football Conference. In general, a businessman will fail the test if:


External links

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