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.

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.