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.

Application

The test, introduced in 2004, is mandated by the Premier League, the Football League and the Football Conference

Football Conference

The Football Conference is a football league in England which consists of three divisions called Conference National, Conference North, and Conference South. Some Football Conference clubs are fully professional, such as Luton Town, but most of them are semi-professional...

. 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

Rotherham United F.C.

Rotherham United Football Club are an English professional football club based in Rotherham, South Yorkshire, who compete in League Two, the fourth tier of English football. The club's colours have traditionally been red and white, although these have evolved through history...

 when they went into administration

Administration (British football)

Sports clubs in the United Kingdom, most often in football, sometimes choose to enter administration when they are unable to pay off outstanding debts. Under the Insolvency Act 1986 a business will face a winding up order bringing them to court and if it is shown that a business cannot pay debts as...

 in 2006 and 2008. He claimed:

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

In November 2009, Stephen Vaughan, then owner of Chester City

Chester City F.C.

Chester City Football Club was an English football team from Chester. The club was founded as Chester F.C., and joined the Football League in 1931, spending most of their time in the lower divisions. They changed their name to Chester City in 1983. Chester won their first league title in 2004, the...

, 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

Value added tax

A value added tax or value-added tax is a form of consumption tax. From the perspective of the buyer, it is a tax on the purchase price. From that of the seller, it is a tax only on the "value added" to a product, material or service, from an accounting point of view, by this stage of its...

 fraud as owner of Widnes Vikings

Widnes Vikings

Widnes Vikings RLFC are an English professional rugby league club based in Widnes, Cheshire. They currently play in the Engage Super League, the top tier of European rugby league, after being awarded a license to compete in the top-flight Super League from 2012 onward...

 rugby club. He transferred control of Chester to his son, Stephen Vaughan, Jr.

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:

• They have power or influence over another Football League club
• They hold a significant interest in another Football League club
• They become prohibited by law from being a director
• They are filing for bankruptcy
  Bankruptcy
  Bankruptcy is a legal status of an insolvent person or an organisation, that is, one that cannot repay the debts owed to creditors. In most jurisdictions bankruptcy is imposed by a court order, often initiated by the debtor....
  
  
• They have been director of a club while it has suffered two or more unconnected events of insolvency
  Insolvency
  Insolvency means the inability to pay one's debts as they fall due. Usually used to refer to a business, insolvency refers to the inability of a company to pay off its debts.Business insolvency is defined in two different ways:...
  
  
• They have been a director of two or more clubs of which, while they have been director, has suffered an event of insolvency