The legislative changes mean that directors of any dissolved company, in addition to those whose companies have entered liquidation or administration, could now be investigated and face potential disqualification.

So, how should the new powers be applied and what should directors do to stay on the right side of the new rules?

Whereas previously, the Insolvency Service had powers to investigate businesses that had entered an insolvency process, including administration and liquidation, the Rating (Coronavirus) and Directors Disqualification (Dissolved Companies) Act 2021 extends those powers to the directors of dissolved companies.