HC Deb 18 July 2003 vol 409 cc695-6W
Dr. Cable

To ask the Secretary of State for Trade and Industry pursuant to her answer of 10 July 2003,Official Report, columns 569-70W, on company directors, what procedures are in place for ensuring that company directors who have been disqualified (a) do not take part as directors and (b) are not involved in the management of companies during the disqualification period; and if she will list the number of directors who have been discovered to have been in breach of disqualification orders in each year since 1997. [126757]

Mr. Sutcliffe

When a director is disqualified, that individual is advised of the provisions of section 13 of the Company Directors Disqualification Act 1986, which states that it is an offence for a person to act in contravention of a Disqualification Order.

The Insolvency Service operates the disqualified directors hotline for the receipt of complaints from members of the public concerning disqualified directors and bankrupts who may be acting in the management of a company in breach of their disqualification orders and undertakings or a bankruptcy order. Additional complaints are also received from the DTI's Companies Investigation Branch, Official Receivers and other Government Departments. Liquidators also have an obligation to report matters of a criminal nature, such as a contravention of section 13, to the Insolvency Service.

Additionally, the sub poena section of Companies House checks new directors appointments against the list of disqualified directors and advises the Insolvency Service of any potential breaches.

Section 11 and section 13 Company Directors Disqualification Act 1986

Details of prosecutions of individuals for breach of section 11/13 CDDA in each year since 1997. The information is contained in Table D2 of the companies annual report published by the Department.

The figures include only those offences prosecuted by this Department. There are likely to be section 11/13 offences prosecuted by other prosecuting authorities (for example, the CPS and the SFO). We have no information on the number of such cases.

1 April to 31 March Prosecutions (number of offences) Convictions Acquittal/other disposal
1997–98 112 86 26
1998–99 169 117 52
1999–2000 109 79 30
2000–01 136 119 17
2001–02 174 135 39
2002–03 141 118 23