§ Mr. BettsTo ask the President of the Board of Trade for what reasons he would not proceed with a recommendation to disqualify an individual as a company director. [18315]
§ Mr. Jonathan EvansThe Secretary of State would not proceed with a recommendation to disqualify if he felt that there was insufficient evidence to show that the director's conduct made him unfit to be concerned in the management of a limited company. Proceedings would also not be instituted where it was felt that it would not be in the public interest to do so.
§ Mr. BettsTo ask the President of the Board of Trade how many recommendations he has received in the past year to disqualify individuals as company directors; how many he has approved; and how many he has rejected. [18314]
§ Mr. Jonathan EvansDuring the year ended 28 February 1995 the Secretary of State has in respect of England and Wales dealt with the following:
Official receiver Insolvency practitioner Reports received in the past year (companies) 273 3,238 Proceedings authorised (directors) 307 470 Reports not accepted (companies) 22 2,715 Although some of the reports received in any given year will he dealt with in that year there will be cases carried over to the next year. Accordingly the numbers of reports received, not accepted and proceedings authorised will not correlate.
§ Mr. BettsTo ask the President of the Board of Trade what criteria he uses in deciding whether to disqualify an individual as a company director. [18316]
§ Mr. Jonathan EvansThe Secretary of State when deciding whether to institute disqualification proceedings has regard to the matters for determining unfitness of directors as detailed in schedule 1 to the Company Directors Disqualification Act 1986, and also those matters which the courts have held to constitute unfit conduct in numerous judgments since 1986.
Having established that there is evident of unfit conduct, proceedings will then be taken if it is in the public interest to do so.