asked the Secretary of State for Trade what further proposals he has for reforming company law by strengthening disqualification proceedings against directors of companies going into liquidation, in line with the recommendations of the Jenkins committee.
Provisions extending the grounds on which directors may be disqualified were included in the Companies Act 1976 and the Insolvency Act 1976. Outstanding recommendations of the Jenkins committee, and other possible measures, will be considered in the light of the report of the Insolvency Law Review committee, which is expected next year, and of experience of the operations of the statutory provisions that I have mentioned.
Is the hon. Gentleman aware that many of us receive constant complaints from our constituents who are the creditors of fly-by-night directors who have taken a firm into insolvency and started it up again almost immediately using the same telephone number, the same office but a different company name? Will the hon. Gentleman, along the lines of paragraph 85 of the Jenkins report, undertake to have his Department consider this as a matter of urgency, because many people have lost a great deal of money?
Does my hon. Friend agree that if a director knows that he may lose other people's money without loss to himself that can amount to fraudulence because he does not bother to care? Being a director surely involves caring, and we should introduce the strongest law possible to stop people from engaging in business when they have no experience and no capital and just use other people's savings.