Tougher Measures to Combat Rogue Directors

1 min

Posted on 29 Apr 2014

Vince Cable has outlined plans for tougher sanctions for directors who act dishonestly or recklessly.

Proposals include:

Banning those who have been convicted of an offence overseas relating to a commercial matter from being a director in the UK;

Allowing the government to intervene and ask a court to require a rogue director to pay compensation to those who have lost out financially as a result of their actions; and

Changing disqualification laws so that courts have a duty to take into account a wider range of matters when considering whether to disqualify a director, including previous business failures, the nature of any losses, overseas conduct and breaches of specific laws.

Legislation will need to be enacted to bring about these changes.

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