No, a director is not automatically restricted from acting as a director again if he/she decides to liquidate their company.  An insolvency practitioner has the duty to investigate the financial affairs and transactions of an insolvent company, including the conduct of the directors.  A confidential report will be made to the Department for Business, Energy and Industrial Strategy (DBEIS) regarding the conduct of each director (or shadow director) who was in office during a 3 year period leading up to the insolvency.  If the DBEIS have concerns they will liaise with the insolvency practitioner and the concerned director to discuss the issues raised.  The DBEIS have the power to apply to Court for an order disqualifying a former director from being involved in the management, promotion or formation of another company for a period of 2-15 years.  This only usually applies in the most serious cases.  We always advise that if you have concerns regarding the impact on you personally from an insolvency event that you call us for some FREE, no obligation advice.