Elections watchdogs have ruled that the CBI's application to register as a supporter of a No vote in the Scottish independence referendum is void.
The Electoral Commission made the decision because the application from the business organisation to be a permitted participant had not been signed by a person authorised to do so.
Last week, CBI director general John Cridland said it had made an "honest mistake" in registering.
John McCormick, Electoral Commissioner for Scotland, said: "The law, and our own guidance, state who can sign a permitted participant application form.
"In this case, the CBI submitted a form to the Electoral Commission that had been signed by the wrong person and their application is void."
He added: "The Electoral Commission will meet shortly with the CBI to make sure they understand the campaigning rules at this referendum.
"We will monitor their activities over the 'referendum period' as part of the monitoring work we do ahead of any election or referendum."
When the CBI registered with the Commission to formally back a No vote last month, it said it had done so "in accordance with the law". But the move sparked a backlash that saw 18 bodies - including several Scottish universities, the BBC and broadcaster STV - either resign or suspend their membership of the business organisation.
Mr Cridland said it was "now time to draw a line under this and focus on the issues". A CBI spokesman said: "Following clear legal advice, an application to register under the terms of the Scottish Referendum Act 2013 has been declared void by the Electoral Commission as it was not signed by an authorised signatory."
Tony Banks, chairman of the pro-independence Business for Scotland organisation, said the CBI's reputation had been "fundamentally damaged".
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