Rogue bosses who dissolve their companies to rip-off staff, creditors and the taxpayer can now be disqualified from being a director.
The Insolvency Service has been granted new powers to tackle unfit directors who place their firm in administration to avoid paying subcontractors and suppliers.
The new legislation extends the Insolvency Service’s powers to investigate and disqualify company directors who abuse the company dissolution system.
If misconduct is found, directors can face sanctions including being disqualified as a company director for up to 15 years or, in the most serious of cases, prosecution.
The Business Secretary will also be able to apply to the court for an order to require a former director of a dissolved company, who has been disqualified, to pay compensation to creditors that have lost out due to their fraudulent behaviour.
Insolvency Service accountants will also be able to scruntinise live companies where there is evidence of wrongdoing.
The Rating (Coronavirus) and Directors Disqualification (Dissolved Companies) Act will also help tackle directors dissolving companies to avoid repaying Government-backed loans taken out during the Coronavirus pandemic.
Business Secretary Kwasi Kwarteng said: “These new powers will curb those rogue directors who seek to avoid paying back their debts, including government loans provided to support businesses and save jobs.
“Government is committed to tackle those who seek to leave the British taxpayer out of pocket by abusing the covid financial support that has been so vital to businesses.
Stephen Pegge, Managing Director of UK Finance, said: “The ability to dissolve a company when necessary is a right reserved in legitimate circumstances where there are no outstanding creditors, however, it can be open to abuse.
“The banking and finance industry therefore supports this legislation which will provide much needed powers to the Insolvency Service to help hold rogue directors to account by providing additional deterrents and easier enforcement of the rules.”
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The Enquirer is putting out its last daily newsletter of the year today as the industry winds-down for its traditional Christmas break.
The website will be updated with any major breaking stories during the holiday season with the full daily news service returning on January 4.
It has been an eventful 12 months and a busy news year for construction as the Enquirer keeps the industry up to date with what is really going on.
These were the best read stories during the year:
Our most popular stories in 2021
(Number of times they were read)
Mass brawl breaks out on London site – (65,706 page views)
Nmcn goes into administration – (53,228 page views)
Timber and steel shortages set to intensify – (46,462 page views)
Scaffold brought down on City of London site – (41,727 page views)
Six planned skyscrapers to change London city skyline– (41,340 page views)
Timber batten prices go through the roof – (35,604 page views)
Facebook site flooded by burst pipe– (31,793 page views)
Gove declares war on construction companies – (30,675 page views)
British Steel stops taking orders in face of ‘extreme’ demand – (30,558 page views)
National highways halts first smart motorway job– (30,015 page views)
The Enquirer enjoyed another year of growth as busy professionals turn to us for a fast and insightful news fix.
Our daily newsletter now has more than 49,000 subscribers.
Google Analytics show the Enquirer enjoyed more than 19.6 million page views this year from more than 4.3 million users – numbers which dwarf any of our traditional construction media rivals.
Our growing band of advertisers enjoy industry leading response rates and all the details about booking a campaign for 2022 can be found here.
Display adverts were clicked on more than 120,000 times during the year generating a staggering 3,500 hours – or 145 days – viewing time of our advertisers’ websites by Enquirer readers.
Our recruitment pages are thriving thanks to our unrivaled reach into construction companies while our Suppliers and Buyers Directory has already signed-up more than 4,700 firms from across the supply chain.
We’d like to wish all our readers a very Merry Christmas and here’s to a happy New Year after a well deserved break.
Plans for three new office blocks around a ruined church at the edge of Castle Park in Bristol have got the go-ahead from city planners.
Developer MEPC can now proceed with its plan to replace three former 1960s bank buildings at the corner of Wine Street and High Street with one nine-storey and two eight-storey office blocks, offering ground-level shops and cafes.
Under plans drawn up by architect FCBStudios, the ruined St Mary le Port church tower will be restored, and three historic city centre streets that were lost during the Blitz will be restored.
Roz Bird, commercial director at MEPC, said “After two years of detailed consultation with local stakeholders in the community, we are delighted that the Development Control Committee voted in favour of our application to rejuvenate the St Mary le Port site.”
An increase of 85% in biodiversity will be provided across the scheme, with an extensive planting scheme that will include over 70 new trees in and around the site, improvements to Castle Park itself and biodiverse terraces and green roofs.
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