HC Deb 26 January 2004 vol 417 c87W
Mr. Hancock

To ask the Secretary of State for Trade and Industry pursuant to her answers of 13 January 2004,Official Report, column 694W, on debarred directors, and column 706W, on Strikes (Dismissal), if she will disqualify Mr. J. Davies of Friction Dynamex as a company director. [149608]

Mr. Sutcliffe

An insolvency practitioner appointed to an insolvent company—which is one that has entered insolvent liquidation, administration, or administrative receivership—has a duty to report to my right hon. Friend the Secretary of State for Trade and Industry on the conduct of the directors of that company. This report is usually submitted to The Insolvency Service within six months of the insolvency practitioner's appointment. Once the report has been received it is reviewed by The Insolvency Service to ascertain whether disqualification proceedings are in the public interest.

In the case of Friction Dynamics Ltd.—the company to which it is presumed then question relates—no report has yet been received from the insolvency practitioner appointed.

The Company Directors Disqualification Act 1986 applies only to directors of a company. Therefore unless an individual can be shown to have been a director or to have acted as a director of a company in insolvency proceedings, they cannot be disqualified under this Act. Mr. J. Davies is not shown as a director of Friction Dynamics Ltd. but is believed to be a former employee.

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