Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, whether he is taking steps to ensure that company directors whose businesses close due to insolvent liquidation cannot re-open under a different company name.

Directors of an insolvent business may run a similar business unless they are prevented from doing so, such as due to being disqualified or subject to a bankruptcy order.

Where the system is abused, for example where a director repeatedly causes harm to creditors the Insolvency Service will investigate and, where there is evidence and it is in the public interest, bring disqualification proceedings or take prosecution action against a director.

The Government is constantly seeking to improve protections to creditors and consumers. Last year, new powers were introduced to allow for the investigation and disqualification of former directors of dissolved companies, which will deter delinquent directors from abusing the dissolution process to leave creditors unpaid.