The Government has announced its intention to clamp down hard on directors of failed companies when circumstances warrant it, including empowering the courts to impose financial sanctions on company directors and allowing creditors to obtain redress when they have suffered due to ‘fraudulent or reckless behaviour’.

In addition, the Government will seek to ban people from acting as company directors in the UK if they have been subject to orders banning them from acting as directors outside the UK.

The overall objective is to enhance the transparency of UK business by the prevention of illegal activity and to better hold companies to account.

Other proposals have been made with the intention that the ultimate ownership and control of UK companies is made clear.

In addition, it is proposed that the time limit for bringing disqualification proceedings against a director will be extended to five years from the present two.