The Insolvency Service is set to gain new powers for cracking down on directors who dissolve companies to avoid repaying government support monies.
Under new legislation, the Insolvency Service will be given powers to investigate directors of companies that have been dissolved, closing a legal loophole and acting as a deterrent against the misuse of the dissolution process.
The process will no longer be able to be used as a method of fraudulently avoiding repayment of government-backed loans given to businesses to support them during the coronavirus pandemic
Extension of the power to investigate also includes sanctions such as disqualification from acting as a company director for up to 15 years.
Business Secretary Kwasi Kwarteng said: W…
Read the full article at: https://www.icaew.com/insights/viewpoints-on-the-news/2021/may-2021/powers-to-ban-unfit-dissolved-company-directors-extended
