HC Deb 14 January 1998 vol 304 cc212-3W
Mr. Redwood

To ask the President of the Board of Trade in what circumstances her Department prosecutes directors of companies in respect of a failure to file accounts on time if the director for the trading period concerned has resigned. [22347]

Mrs. Beckett

[holding answer 12 January 1998]: In line with the guidance issued by the Attorney-General in his "Code For Crown Prosecutors", Companies House institutes criminal proceedings against directors who fail to comply with the disclosure requirements of the Companies Acts 1985 and 1989.

The aim of these proceedings is to secure compliance and, as a general rule, prosecution would not normally take place against a former director who would no longer be able to influence the company's affairs and would, therefore, not be capable of remedying a default.

It is possible, however, to depart from these general rules where there is an indication that a director has resigned purely to avoid compliance or conviction.