The Insolvency Service now has greater powers to deal with directors who dissolve companies to evade debts
The government have issued a press release about the The Rating (Coronavirus) and Directors Disqualification (Dissolved Companies) Act, which provides the Insolvency Service with greater powers to investigate and disqualify company directors who abuse the company dissolution process.
For further details please read the press release here.
Amanda Ireland, Head of mfw Insolvency & Corporate Recovery and a licensed insolvency practitioner, says of these new measures, “In the past the Insolvency Service had no powers to take action against former directors of companies which had been dissolved, but this has now changed. Rogue directors, especially those who took advantage of bounce back loans but did not utilise those funds to pay the companies liabilities could now face sanctions or even prosecution, where there is evidence of wrongdoing”.