Business secretary Vince Cable will today launch a crackdown on ”dodgy directors” as he aims to remove the “rotten core” from UK business.
At the Liberal Democrat conference in Glasgow today, Cable is expected to promise tougher rules for director disqualifications, making it easier for authorities to permanently bar people from sitting on company boards.
In April, Cable started investigating whether he could ban former HBOS directors James Crosby, Lord Denis Stevenson and Andy Hornby from working in company boardrooms after the parliamentary commission on banking standards called for them to be banned from financial services.
Today he will say: “We need to see fairness as well as trust in our director disqualification regime. For too long a small rotten core has got away with a slap on the wrist, a ban from working in their own industry or at the most, a time-limited ban.
“This neglects the fact that rogue directors’ decisions affect the lives of the employees they are responsible for and the businesses they deal with. That is why I will be beef up laws to ban rogue directors from running British companies so dodgy directors face the strong possible consequences for their irresponsible actions.”
Cable will also promise more transparent company ownership as well as launching a consultation into zero hours contracts and asking the Low Pay Commission whether the time is right to increase the minimum wage.
Following the G8 summit in July the Government published a consultation on improving trust and transparency in business, which proposes a central register of beneficial ownership for all firms. The register will include any person with an interest in 25 per cent in a firm’s shares or voting rights.