Vince Cable: Make directors liable for failure

By July 29, 2013Insolvency

Business Secretary Vince Cable has proposed making fraudulent or negligent directors of UK companies personally liable for the firm’s debts as part of an overhaul of company rules.

He also said that directors deemed to be reckless should be disqualified from being able to work at another firm.

Mr Cable also wants to allow individual regulators to disqualify directors in their particular industries.

His proposals follow concerns over the toughness of corporate oversight.

A series of banking scandals, such as Libor and the mis-selling of PPI, as well as huge state bailouts in the wake of the financial crisis, have dented public confidence.

Mr Cable said: “We’re proposing tough measures to beef up the system for holding directors to account if they don’t play by the rules or take their responsibilities seriously. This will mean honest, hard-working directors are not disadvantaged and will give the public greater confidence that irresponsible directors will face consequences for their actions.”

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