THE Government will today unveil plans to ban negligent company directors for up to 15 years.
Stephen Byers, Secretary of State at the Department of Trade & Industry, (DTI) is expected to outline the proposals when he publishes a business White Paper, Opportunity in a World of Change.
Under existing DTI rules, a director can be banned from sitting on the board of a limited company for a maximum of three years.
The new plan would see a maximum 15-year ban imposed of those whose companies have been declared insolvent, either because they have been dishonest, irresponsible or negligent.
A banned director would also have to notify any potential lender of their status where the amount involved was more than £250.
The proposals could also mean honest directors who simply get into financial difficulty could have restrictions lifted within a year, bringing UK regulations into line with those in the US.
The White Paper is a joint document with the Department For Education and Employment and will be launched by Mr Byers and DFEE Secretary of State David Blunkett.
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