Directors ruled unfit to be in charge of companies face fast track disqualification following the implementation this month (April) of new rules under the Insolvency Act that became law last year.
The administrative disqualification of directors (ie without the need of the case going to court) can only be carried out with the agreement of the directors concerned, although for directors who believe they would be banned by a court it will be a less painful procedure. The Government\'s aim is to save court time.
Other changes to the Insolvency legislation include new rules relating to the investment of bankruptcy estate funds held in the Insolvency Services Account with interest payments being introduced.
Landlords will no longer be able to evict companies owing rent during the administration order procedure. Voluntary liquidators will be required to report suspicions of criminal misconduct. Information given by individuals under a power of compulsion can no longer be used against them by the prosecution in any subsequent criminal proceedings.
Changes are also being introduced that will open the way for creditors to recover a deceased insolvent\'s interests in jointly owned property.