HC Deb 15 July 1999 vol 335 c564
13. Mr. Colin Burgon (Elmet)

What plans he has to increase the penalties for disqualified directors who run businesses. [90021]

The Minister for Trade (Mr. Brian Wilson)

There are no restrictions on disqualified directors running businesses on their own account. Accordingly, there are no penalties arising. There are no plans to change that. The penalties for directors who act in contravention of disqualification orders are imprisonment for up to two years or a fine, or both. There are no plans to increase those penalties.

Mr. Burgon

I thank my hon. Friend for that reply. How can disqualified directors acting behind the scenes in the management of companies best be detected?

Mr. Wilson

As my hon. Friend might expect, we are doing a great deal about that. In January 1998, the Insolvency Service launched a telephone hotline for the public and the business community to report disqualified directors who continue to act while banned. There has been a good response: 925 calls were made to the hotline and 125 cases were referred to solicitors for consideration. Companies House checks have also been introduced to ensure that all disqualified directors resign from all current directorships and are not appointed to any new ones. A great deal is being done to curb the activities of rogue directors.