§ Mr. Laurence RobertsonTo ask the Secretary of State for Trade and Industry what statutory provisions regulate the ability of directors of companies which have become insolvent starting up in a similar line of business with a new company; what changes he is planning to introduce; and if he will make a statement. [86414]
§ Dr. HowellsA Director's involvement with a company which has become insolvent does not, of itself, preclude his or her from being a Director of a new company unless:
(a) contrary to the provisions of S216 of the Insolvency Act 1986, it has the same or a similar name to the company which failed;
or
(b) the director has been disqualified from so acting under the Companies Directors Disqualification Act 1986.
When Parliamentary time allows we plan to introduce legislation to improve the efficiency and effectiveness of the procedure for disqualifying unfit company directors. There are no plans to make any other change in this area.