The Insolvency Service has handed out 573 director disqualifications lasting more than five years in 2016/17, the highest figure since 2010/11. In 2015/16, it handed out 532 bans. Data from the regulator showed that, in total, there were 1,214 director disqualifications in 2016/17, compared with 1,210 one year earlier.
The regulator said the average period of a director’s disqualification was 5.8 years, compared to 5.9 in 2015/16. Director disqualifications can last up to 15 years in the most serious cases, the accountancy firm said.
The key findings in the statistics included:
- The total number of directors disqualified for misconduct remained around the same as in 2015/16. The average obtained period of disqualification remained around the same as in 2015/16.
- The number of bankruptcy and debt relief restrictions increased for the first time since 2013/14, coinciding with an increase in the number of bankruptcies.
- The average period of bankruptcy restrictions remained in line with
- Enforcement outcomes are linked to numbers of insolvencies Corporate insolvencies have been on a decreasing trend since 2012, while bankruptcies increased in late 2016 having previously been on a decreasing trend since 2009. This is one driver of changes in the number of enforcement outcomes.
- Total number of director disqualifications remained level In 2016/17, 1,214 director disqualifications were obtained, compared with 1,210 in 2015/16.
- The average period of disqualifications remained level The average period of a director’s disqualification was 5.8 years, compared to 5.9 2015/16.
- The number of companies wound up in the public interest decreased There were 85 companies wound up in the public interest in 2016/17, down 46 cases from 2015/16.
- Bankruptcy and debt relief restrictions increased for the first time since 2013/14 In 2016/17 there were 480 bankruptcy and debt relief restriction orders and undertakings obtained (up 10% compared to 2015/16).
- The average period of bankruptcy restrictions was 5.3 years, in line with long term trends.
