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Written question asked by Scott Benton (Independent (affiliation)) on Friday, 16 February 2024, in the House of Commons. It was due for an answer on Tuesday, 20 February 2024. It was answered by Kevin Hollinrake (Conservative) on Monday, 26 February 2024 on behalf of the Department for Business and Trade.


New Businesses

Question

To ask the Secretary of State for Business and Trade, whether her Department plans to implement financial safeguards to prevent individuals who have previously mismanaged businesses from establishing limited companies.

Answer

The Insolvency Service takes robust enforcement action against directors where there is evidence of unfit conduct and will bring disqualification proceedings where in the public interest.

The Economic Crime and Corporate Transparency Act 2023 will further strengthen these safeguards. Individuals who are disqualified under director disqualification legislation will be prohibited from being appointed as a director and their existing directorships will become void. The Act also extends the grounds for making a director disqualification order so that individuals who persistently breach new identity verification or filing requirements may face disqualification.


Secondary information

Type
Written question
Reference
14250
Session
2023-24
Subjects
New businesses
Link
View this Written question on www.parliament.uk