Participating in fraudulent business carried on by company etc.: penalty

Question proposed, That the clause stand part of the Bill.

The clause implements a recommendation by the company law review in 2001 that the penalty for the offence of fraudulent trading in the Companies Act should be increased from seven to 10 years in order to align it with the most serious fraud offences in the Theft Act 1968. We agree that that is a sensible change, particularly in the context of the Fraud Bill, under which 10 years is the maximum penalty for the general offence of fraud. Fraudulent trading can have serious consequences, and although relatively few cases are prosecuted, average sentences are higher than for other types of fraud.

Question put and agreed to.

Clause 10 ordered to stand part of the Bill.