Asked by: Scott Benton (Independent - Blackpool South)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, whether she is taking steps to enhance due diligence procedures for individuals establishing limited companies.
Answered by Kevin Hollinrake - Minister of State (Department for Business and Trade)
The Government is taking action to enhance checks conducted on individuals establishing limited companies. The Economic Crime and Corporate Transparency Act 2023 received Royal Assent on 26 October 2023 and the majority of new powers will come into force in March 2024. Companies House will have enhanced abilities to protect the integrity of the register. This will include powers to query suspected fraudulent incorporations and require further evidence. During 2025, compulsory identity verification checks will be implemented for directors (and equivalents), persons with significant control and those filing information with Companies House before they can transact with the Registrar.
Asked by: Scott Benton (Independent - Blackpool South)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, whether her Department plans to implement financial safeguards to prevent individuals who have previously mismanaged businesses from establishing limited companies.
Answered by Kevin Hollinrake - Minister of State (Department for Business and Trade)
The Insolvency Service takes robust enforcement action against directors where there is evidence of unfit conduct and will bring disqualification proceedings where in the public interest.
The Economic Crime and Corporate Transparency Act 2023 will further strengthen these safeguards. Individuals who are disqualified under director disqualification legislation will be prohibited from being appointed as a director and their existing directorships will become void. The Act also extends the grounds for making a director disqualification order so that individuals who persistently breach new identity verification or filing requirements may face disqualification.