Business secretary Vince Cable has launched a crackdown on “dodgy directors” as he aims to remove the “rotten core” from UK business.
At the Liberal Democrat conference in Glasgow this week, Cable promised tougher rules for director disqualifications to make it easier for authorities to permanently bar people from sitting on company boards.
He said: “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.”
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.
Separately, Cable will promised more transparent company ownership, launched a consultation into zero hours contracts and said he would approach the Low Pay Commission about whether the time is right to increase the minimum wage.