More penalties for errant directors
Business secretary Vince Cable has tabled new rules that will see company directors face tougher penalties for breaking the law. Under Cable’s plans, directors convicted of offences overseas would be banned from running UK companies, and ministers could ask courts to make disqualified directors pay compensation.
In addition, judges may be put under a duty to consider factors, such as previous business failures and overseas conduct, when they assess whether to disqualify an executive. It was also unclear whether compensation would go to ‘victims who make a fuss’ or to all creditors. Legislation to enact the changes is expected to be brought forward in the next parliamentary session.
The number of director disqualifications fell from 1,437 in 2010–11 to 1,031 in 2012–13 and Cable did acknowledge that the vast majority of directors in the UK ran their businesses in the right way…
Click on the link below to read the rest of the IBB Solicitors briefing.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.