Big news for bosses: Banning orders on the rise
Big news emerging from the business world this week is a figure of 83% which highlights the annual jump in the number of disqualification and banning orders made against criminal company directors in the UK.
A study carried out by chartered accountants Moore Stephens has found that orders surrounding director disqualification increased from 65 to 119 in the 12 months leading up to the end of March 2015.
Fraud was identified as one of the key criminal behaviours exhibited by these rogue business directors, along with the falsification of company records and even acting as a director while disqualified from the company.
Fears were initially prompted that these directors in question could go unpunished for a string of serious offences after Moore Stephens revealed that the Insolvency Service, the leader behind investigations into the rogue actions of directors, has recently seen its budget cut, resulting in letting go almost a third of its workforce with staff numbers dropping to 2,000.
While there is a feeling among insolvency practitioners, and chartered accountants like Moore Stephens, that the Insolvency Service could still be better funded and not allow corrupt directors to slip by unnoticed, figures from this latest research do show that more directors than ever before are being caught and imposed with banning orders for criminal behaviour.
It all begs the question – how many more rogue directors could the appropriate action be taken against with an increase in budget and resources at the Insolvency Service? It’s certainly an issue that, as Jeremy Willmont of Moore Stephens pointed out, should be considered by the new government.
If your business has been affected by the banning order of a director and you’re worried about what the future holds for the business finances or the business as a whole, get in touch with Financial Saviour today. We are licensed insolvency practitioners and experts in providing leading advice on all aspects of financial matters and business turnaround and recovery.