The Government intends to implement new legislation targeting company directors who strike off and dissolve companies, leaving creditors out of pocket.
The Rating (Coronavirus) and Directors Disqualification (Dissolved Companies) Bill (the Bill) had its second reading on 28 June 2021.
Whilst these concerns were first consulted upon in 2018 the Bill is now being brought in quickly to combat possible misuse of the strike off procedure to avoid paying back bounce back loans. The Bill will extend the existing director disqualification regime to directors of dissolved companies.
Katharine Lawrenson at Leonard Curtis Legal talks about how extending the Director Disqualification Regime to dissolved companies will impact on creditors