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Rise in disqualifications of company directors

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New rules have led to a 24% increase in the number of director disqualifications. The DTI said that 935 directors were banned between March and September 2001, many thanks to the 'fast-track' procedures introduced by the Insolvency Act 2000.

Under the Act, directors who agree that their past business record makes them unfit to run a company can be subject to an administrative order to this effect. Almost six out of ten of the 935 disqualified directors were subject to this procedure.

A further breakdown of the figures showed that the construction and demolition sector recorded the highest number of disqualifications, at 103, followed by the computer services with 75 and textiles and clothing with 73. Over a third were from London and the South East, a fifth were from northern England, and 13% were from the Midlands.

DTI minister Melanie Johnson said: "Dodgy directors tarnish the image of the vast majority of legitimate businesses and often leave debts and misery in their wake. We are also determined to clamp down on the minority of fraudulent directors who try to cheat the public. These figures should serve as a warning to all of them - we will not let you get away with it."


This story was provided by AccountingWEB

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