This website uses cookies to ensure you get the best experience. Please read our policies for more information.

10 Chartered Accountants

News

Cable pledges crackdown on ‘rogue’ directors
03 October 2015

Cable pledges crackdown on ‘rogue’ directors

Business Secretary Vince Cable has announced plans for reforms to make sure directors face “the strongest possible consequences” if they act improperly.

Dr Cable said on 16 September that he planned to introduce legislation, before the current Parliament ended, to bring in proposals including:

  • strengthening rules to give investors and creditors the confidence that rogue directors will be banned from running companies
  • helping creditors to receive compensation where they have suffered loss from a director’s criminal or reckless behaviour
  • ensuring that directors banned from running companies abroad cannot run British companies
  • extending the investigation time allowed for complex cases of director misconduct introducing corporate behaviour training for banned directors who want to run a company again in the UK.

He said: “For too long, a small rotten core has got away with either a slap on the wrist, a ban from working in their own industry or at the most, a time-limited ban.

“Rogue directors’ decisions affect the lives of the employees they are responsible for and the businesses they deal with. That is why I will beef up the laws to ban rogue directors from running British companies so dodgy directors face the strongest possible consequences for their irresponsible actions.

“Government recognises that taking risks is an important part of business, and the failure of a company does not indicate misconduct on the part of the directors.

“However, at the same time there is a lack of confidence in the regime for dealing with directors’ misconduct through civil law, though where misconduct consists of criminal behaviour then criminal proceedings can be brought.”

The changes would not be retrospective for previous business failures.

Link: Directors’ responsibilities

Other recent news

Employee Ownership Trusts – Your key to a tax-efficient exit?
11 December 2024

If you are looking to plan your exit from your…
Read more

Are you claiming the right office-based expenses?
11 December 2024

Claiming allowable expenses when calculating taxable profit as a self-employed…
Read more

I am unable to pay my Income Tax bill – What can I do?
11 December 2024

Sometimes, paying your tax bill on time can be difficult…
Read more

What is the most tax-efficient salary choice for you after the Budget?
11 December 2024

Directors have the ability to draw income from a business…
Read more

Should you buy a double cab pickup before April?
11 December 2024

If you are a sole trader or small business owner…
Read more

»

Case Studies