§ 6. Ann Winterton (Congleton) (Con)If she will introduce legislation regulating the activities of shadow directors in small businesses. [177756]
§ The Parliamentary Under-Secretary of State for Trade and Industry (Mr. Gerry Sutcliffe)The answer to the question is no: the activities of shadow directors are already regulated, as the hon. Lady knows. We would not want any unnecessary red tape.
§ Ann WintertonI welcome the fact that the Department of Trade and Industry has recognised the problem of shadow directors. They are not illegal, but surely the public have the right to know who directs or runs a company. Fewer cases of abuse now exist, but is the Minister aware that some still persist in manipulating the system, virtually defrauding individuals and companies—more often than not smaller companies that can least bear the loss—that have provided goods and services? I have one such example in Congleton. Will the Minister undertake to look into the matter on behalf of my constituents to see what further action could be taken?
§ Mr. SutcliffeI am grateful to the hon. Lady for raising the issue of how directors operate in certain conditions, which causes concern to many people. She will know about the disqualification hotline, which has produced much information about people who act as directors inappropriately. For the information of hon. Members, its number is 0845 601 3546. If the hon. Lady gives me details of the individual case that she mentioned, I shall look into the matter as soon as possible.