0 £0.00
This item was added to your basket

Dear visitor,
You are viewing 1 of your 2 free articles


We’ve made wider, important changes to our print and online content to enhance the value of exclusive, insightful, discerning content we create every day. Support valuable editorial content by becoming a member of our Credit Club - register for free or choose a paid plan.

Register now or Login

Orders to ban rogue directors increase seven-fold

The Insolvency Service estimates it has prevented losses of £92m for the year 2016/2017 as a result of public interest disqualification orders.


Amber-Ainsley   Pritchard

Share on LinkedInShare on Twitter
Amber-Ainsley   Pritchard
Share on LinkedInShare on Twitter

 

Public interest disqualification orders are used by the government as a way of removing directors whose behaviour makes them unfit to be director of any company.

 

Accountancy firm Moore Stephens said the Insolvency Service is increasingly using these orders to remove potentially rogue directors from their positions before they can do more wrong.

 

Data from the Insolvency Service shows that the number of public interest disqualifications have increased from four in 2015/2016 to 28 in 2016/2017.

 

The accountancy firm said this type of disqualification is on course to grow even more in 2017/2018, after 20 of these disqualifications were procured in the first six months of this year.

 

The Insolvency Service also estimated it saved creditors around £114,000 for each director disqualified.

 

Moore Stephens said the large increase in disqualifications is evidence of the Insolvency Service looking to initiate disqualification proceedings at the earliest possible opportunity. This is done to protect both customers and creditors of the respective companies.

 

Mike Finch, restructuring and insolvency partner at Moore Stephens, said: “Directors who are suspected of malpractice have in the past gone on to cause further damage at other businesses. This makes it vital that the Insolvency Service prevent them acting at the earliest possible opportunity.

 

“The fact the number of public interest disqualifications is continuing to rise should give creditors and consumers more confidence that unfit directors are being removed from the system.”

Share on LinkedInShare on Twitter
Add New Comment
LoginRegister

LATEST INDUSTRY NEWS STRAIGHT TO YOUR INBOX

READ NEXT

TRI Conference Speaker Information

Three directors of debt management company disqualified

Three directors of debt management company disqualified

Deloitte partners appointed as administrators to Poundworld

Deloitte partners appointed as administrators to Poundworld

Credit Strategy
LinkedIn page

Did you find our website useful?

Thank you for your input

Thank you for your feedback

creditstrategy.co.uk – an online news and information service for the UK’s commercial and consumer credit industry. creditstrategy.co.uk is published by Shard Financial Media Limited, registered in England & Wales as 5481132, Axe & Bottle Court, 70 Newcomen St, London, SE1 1YT. All rights reserved. Credit Strategy is committed to diversity in the workplace.
@ Copyright Shard Media Group