Business Secretary Vince Cable has outlined plans to shake up the insolvency process, giving extra powers to the courts and government bodies including the Insolvency Service and Financial Conduct Authority.
These include allowing courts to impose fines on directors when handing out a disqualification order, extending the time limit for bringing disqualification proceedings against directors to five years from two, and ensuring directors that have been banned outside the UK are also banned from running a UK company.
Duncan Cochrane-Dyet, Partner at DSH, based in Maidstone, said: “These proposals will specifically target directors who flout the law and then enter into insolvency. For those directors running companies that become insolvent through no negligence of their own, it will make no difference.
“We believe the general threat of sanctions and fines highlights the need for increased attention to detail by directors of struggling companies of all sizes and sectors, to ensure their businesses are properly controlled.”
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