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Policy Context
The current regime of insolvency laws and processes fails to deal with company directors in a convincing manner due to ambiguity, lack of coordination, and difficulties in enforcement.
The main rules governing the liability of directors in cases of corporate insolvency can be found both in the common law and in statutory provisions. Statutory duties and liabilities imposed on directors can be found in the Companies Act 2006, the Company Directors Disqualification Act 1986, and the Insolvency Act 1986.
Key research findings
Directors are treated inconsistently. Sometimes they are seen as competent individuals with…