§ Mr. HesfordTo ask the Secretary of State for Trade and Industry what action he is taking to prevent disqualified company directors becoming involved with new companies. [90094]
§ Dr. HowellsAction is taken by a combination of active monitoring of the appointment of new directors by Companies House and of the enforcement of disqualification law by the Insolvency Service.
Companies House records details of all disqualified directors in a public register and since 1995 has been taking continuous steps to improve the accuracy of, and access to, the register. It has also been carrying out checks to ensure that disqualified directors resign their directorships in active companies. It also routinely checks that new directors of companies notified to it are not already disqualified.
In addition, the Insolvency Service—through Official Receivers and insolvency practitioners—reports contraventions of disqualification orders for prosecution; liaises with central and local government departments and agencies which may identify breaches in the course of their own contacts with businesses; and has set up a telephone hotline for the public and business to report disqualified directors who continue to act while banned.