§ Mr. Austin MitchellTo ask the President of the Board of Trade what proportion of disqualification returns or reports submitted by insolvency practitioners during the past four years, and what proportion of disqualification returns or reports submitted by official receivers during the same period, have resulted in disqualification orders being made against directors.
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§ Mr. Jonathan EvansThe answer is as follows:
Insolvency Practitioner Cases Total number Submitted Financial year Returns Reports Number of orders 1991–92 15,615 3,602 146 1992–93 18,233 3,901 211 1993–94 16,124 3,727 194 1994–951 7,698 1,927 90 1 to 31 October 1994 The number of cases reported on relate to the number of companies, whereas the number of disqualification orders made relate to the number of directors disqualified. The figures cannot be related to each other as it can take a number of years from when the report is submitted to the date when the order is made.
Official receiver reports Financial year Total number of reports submitted Number of orders 1991–92 2,402 155 1992–93 2,657 182 1993–94 3,532 147 1994–951 1,537 48 1 to 31 October 1994 The number of cases reported on are quoted in terms of the number of companies. The number of disqualification orders made relate to the number of individual directors disqualified. The figures cannot be related to each other as it can take a number of years for a disqualification order to be made following the submission of a report.
The number of unfitted returns for individual directors in official receivers cases is not held.
§ Mr. Austin MitchellTo ask the President of the Board of Trade how many initial unfit conduct reports made, pursuant to the Company Directors Disqualification Act 1986 and submitted by (a) insolvency practitioners and (b) official receivers were rejected for not being evidentially strong enough in each of the last three years.
§ Mr. Jonathan EvansThe answer is as follows:
Insolvency practitioner reports Financial year Total number of reports submitted Number rejected 1991–92 3,602 3,796 1992–93 3,901 3,320 1993–94 3,727 3,604 1994–951 1,927 1,774 1 To 31 October 1994. The number rejected for a particular year does not bear any relation to those reports actually submitted for that year. Whilst a high proportion will be rejected in the year that the report was submitted—approximately 70 to 75 per cent.—some will not actually be rejected for some time due to the time taken to investigate the matter further.
The totals for rejections also include those not proceeded with because of parallel criminal proceedings, the bankruptcy of the potential respondent or the discovery of evidence which would refute or mitigate the allegation of misconduct.
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Official receivers reports Total number of reports submitted Financial year Without full report With full report Number of full reports rejected 1991–92 2,166 236 31 1992–93 2,536 121 32 1993–94 3,425 107 13 1994–951 1,443 94 12 1 To 31 October 1994 The total rejections for a particular year relate only to the cases which have been submitted with a full report. Some of them will also related to cases which have been submitted in an earlier financial year.
The rejection figures include those which have riot been proceeded with because there are already criminal proceedings afoot, the individual concerned has become bankrupt, or there has been evidence discovered which would refute or mitigate the allegations of misconduct.