Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, whether he plans to prevent the directors of companies which become insolvent during their directorship from setting up more companies.

It is important to remember that most companies do not become insolvent due to wrongdoing. Directors of an insolvent company can run similar businesses unless they are disqualified or subject to restrictions. Where directors abuse the system, the Secretary of State has powers to investigate and, if appropriate, pursue their disqualification or prosecution of the relevant directors.

Companies House and The Insolvency Service are currently strengthening their intelligence sharing to better identify rogue directors.

The Government continually reviews corporate and insolvency laws.