Corporate Insolvency Liabilities

Trade and Industry written question – answered on 7th November 2001.

Alert me about debates like this

Photo of John Whittingdale John Whittingdale Shadow Secretary of State (Trade and Industry)

To ask the Secretary of State for Trade and Industry what measures she is taking to improve directors' awareness of their corporate insolvency liabilities.

Photo of Miss Melanie Johnson Miss Melanie Johnson Parliamentary Under-Secretary, Department of Trade and Industry

The Insolvency Service has produced a guide which informs directors of companies what duties and responsibilities they have if their company is subject to insolvency procedures. The Insolvency Service has also ensured that the information provided by Companies House to the officers of newly formed companies contains details of the responsibilities they have while managing limited companies.

In addition, when my right hon. Friend the Secretary of State for Trade and Industry successfully applies to have an unfit director disqualified from acting as a director, or accepts an undertaking not to act in that capacity, a press release is issued in local newspapers and trade journals relevant to the insolvent company. This provides details of the director's misconduct complained of in the application to disqualify and this reporting assists greatly in the drive to increase the business community's awareness of the dangers of running a company while insolvent.

The company law review has made proposals for a more general codification of the duties of directors under company law and the Department is studying them.

Does this answer the above question?

Yes1 person thinks so

No0 people think not

Would you like to ask a question like this yourself? Use our Freedom of Information site.