The Insolvency Service has been granted new powers to tackle unfit directors who dissolve companies to avoid paying their liabilities.
The new legislation extends the Insolvency Service’s powers, on behalf of the Business Secretary, to investigate and disqualify company directors who abuse the company dissolution process.
The Rating (Coronavirus) and Directors Disqualification (Dissolved Companies) Act will also help tackle directors dissolving companies to avoid repaying Government backed loans put in place to support businesses during the Coronavirus pandemic.
The press release about this new legislation, which received royal assent on 15 December 2021, can be accessed here.