The number of UK company directors disqualified has increased for the third year running to 1,231 in 2017/18, according to analysis from Moore Stephens. Thre research also shows that bans for disqualified directors are getting longer.
The UK has tightened its disciplinary regime for rogue directors, with the number of disqualification orders increasing to 1,231 in the past year. Whilst the average length of bans also increased from 7.5 to 7.7 years. The number of cases involving unpaid tax rose by 7% over the past year while the number of more expensive criminal cases fell by 37%.
Moore Stephens head of restructuring and insolvency Jeremy Willmont says that the Insolvency Service said “When a company is in financial distress, some directors may be tempted to break the rules to keep the business going a little bit longer, However, longer disqualification periods and the increase in disqualifications should persuade directors to seek professional advice before making any decisions that could adversely impact the rest of their careers.”
“Despite a lack of resources, the Insolvency Service is keeping up the pressure to root out rogue directors particularly in relation to high profile cases.”