Under new rules directors that try to dissolve their companies to avoid debts can now be disqualified from being a director.

The new legislation extends the Insolvency Service’s powers to investigate and disqualify company directors who abuse the company dissolution process.

The Rating (Coronavirus) and Directors Disqualification (Dissolved Companies) Act will also help tackle directors dissolving companies to avoid repaying Covid-19 bounce back loans put in place to support businesses during the pandemic.