More rogue directors held to account

25 Jun 2014 | 09:58 am | 1 min. read

•Director disqualifications on the rise following insolvency service crack down Data obtained from the UK Insolvency Service by international law firm Pinsent Masons show that the number of director disqualifications in England, Wales and Scotland have increased by 25% in the past year. 1208 directors were disqualified in 2013-14 compared to 969 in 2012-13.

This follows a three year decline in disqualifications.

The figures, obtained under the Freedom of Information act, show that the number of company directors being investigated and disqualified has increased 25% over the past year.

Last year also saw a 19% increase in the number of director disqualification proceedings issued by the Insolvency Service in England and Wales and Scotland .

The findings come as business secretary, Vince Cable, continues to call for tougher laws to crack down on 'dodgy directors'.

Disqualification proceedings are most commonly brought where a company has become insolvent and there is evidence that the directors’ conduct makes them unfit to be concerned in the management of a company.  Misconduct can range from serious incompetence to recklessness and fraud.

Steve Cottee a partner in Pinsent Masons’ Restructuring team, says:

"It is interesting to see such a significant rise in the number of director disqualifications and orders from last year. It may be a sign that the insolvency Service are taking a more robust approach to rogue directors. In any event it is certainly a warning for directors to act in accordance with their fiduciary  duties and behave responsibly to creditors."

Disqualified Directors can face bans of up to 15 years depending on the nature and severity of the offence. Disqualifications bar individuals from being a director of a company; acting as receiver of a company's property; or being concerned in or taking part in the promotion, formation or management of a company. 

Latest press releases

Show me all press releases

Pinsent Masons hires corporate partner in Melbourne

Multinationallaw firm Pinsent Masons has strengthened its corporate team in Australia withthe recruitment of partner Andrew Fisken.

Pinsent Masons advises PIC on £132m buy-in of Tomkins 2008 pension scheme retirement benefits plan

Pinsent Masons advises PIC on £132m buy-in of Tomkins 2008 pension scheme retirement benefits plan.

Pinsent Masons advises on Umicore’s € 591 million sustainability linked note fundraising

Multinational law firm Pinsent Masons has advised various institutional investors in relation to Umicore’s € 591 million sustainability linked note fundraising.

People who viewed this press release also viewed

Show me all press releases

Pinsent Masons advises Rcapital on the acquisition of the Nasmyth Group

Multinational law firm Pinsent Masons has advised Rcapital on the acquisition of Nasmyth Group, a leading provider of specialist precision engineering services to the aerospace industry.

Pinsent Masons advises on L Catterton’s sale of Sweaty Betty to Wolverine World Wide Inc

Multinational law firm Pinsent Masons has acted as legal advisor to Sweaty Betty, the founders, Tamara and Simon Hill-Norton, and the senior management team, on the $410m sale of global activewear and lifestyle brand, Sweaty Betty, to Wolverine World Wide, Inc. (WWW).

Pinsent Masons advises Grant Thornton on the pre-pack sale of CB Imports

Multinational law firm Pinsent Masons has advised joint administrators, Christopher Petts and Richard Lewis of Grant Thornton UK LLP, on a pre-pack administration sale of the business and assets of CB Imports, trading as "Country Baskets."

For all media enquiries, including arranging an interview with one of our spokespeople, please contact the press office on

+44 (0)20 7418 8199 or 

We are processing your request. \n Thank you for your patience. An error occurred. This could be due to inactivity on the page - please try again.