Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, what steps he plans to take to prevent company directors from dissolving indebted businesses and then establishing a similar business without paying former debts.

The Government expects directors to act lawfully and responsibly in respect of the companies they run and that includes ensuring that liabilities and other obligations are discharged before they apply for a company's voluntary dissolution. Those who fail to do so lay themselves open to the risk of personal liability, director disqualification and, potentially, imprisonment. The Government made a commitment in the Autumn Statement 2024 to increase collaboration between HMRC, Companies House, and the Insolvency Service to tackle those using contrived corporate insolvencies and dissolutions to exploit and defraud customers and creditors.