Director disqualification

Our coalition government pledged to protect consumers and businesses from rogue operators by promising to deal harshly with individuals who operated companies to the detriment of customers/ creditors who dealt with them.

The result? 971 directors were disqualified in 2013 compared with 1,594 in 2012.

It could be argued that this was based on falling numbers of corporate failures. Alternatively, it could also be argued that this is as a result of reductions in headcount in the Directors’ Disqualification Unit of BIS and the cuts in funding for the costs of bringing legal cases against the alleged perpetrators.

To muddy the waters further, I would be interested to discover how many of the 971 were actual prosecutions rather than voluntary acceptance of periods of disqualification by those against whom action was being considered.

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