§ Mr. DrewTo ask the Secretary of State for Trade and Industry if she will make a statement on the effectiveness of the insolvency laws with particular reference to the enhanced protection of creditors from directors. [26793]
§ Miss Melanie Johnson[holding answer 14 January 2002]: The Insolvency Act 1986 contains provisions providing effective protection for creditors against misconduct on the part of company directors. The Company Directors Disqualification Act 1986 also enables us to provide effective protection from the activities of irresponsible, incompetent or rogue directors of companies that have become insolvent. Since April 2001 it has been possible to achieve disqualification by accepting undertakings as well as by court proceedings, and in the last two years over 3,000 directors have been disqualified for period of between two and 15 years on account of unfitted conduct.