The Insolvency Service partners with Crimestoppers to increase number of tip-offs from public about company directors illegally operating while disqualified or bankrupt, or repeatedly phoenixing businesses
There is a significant problem with banned directors ignoring disqualification and simply setting up a new company and continuing to operate in breach of the law, many after putting businesses into liquidation with huge debts including millions owed to HMRC, not to mention regular creditors.
The crackdown on rogue directors is the first time the Insolvency Service has teamed up with Crimestoppers so people can provide anonymous tip-offs about banned directors breaking the law. It is particularly looking for information about anyone acting as a director while disqualified or an undischarged bankrupt, and banned directors committing fraud and repeatedly using companies to avoid paying debts through abusive phoenixism.
While Insolvency Service does managed to act against some banned directors, it believes ‘many cases go unreported’. There are currently 11,000 people serving disqualification bans.
The new partnership with Crimestoppers allows members of the public to pass on information 100% anonymously.
Dave Magrath, director of investigation and enforcement services at the Insolvency Service, said: ‘Every year we disqualify more than 1,000 directors because they have shown themselves to be unfit to run a company.
‘We know that not every breach of a disqualification comes to our attention through official channels. The public often sees things we don’t such as a banned director running a business, or someone using a new company to walk away from old debts.
‘Directors who ignore a disqualification rarely stop there too. Time and again we see banned directors go on to commit fraud and cause even greater harm than before.
‘This partnership with Crimestoppers gives people a simple, anonymous way to report their concerns so we can put a stop to these criminal actions.
‘Rogue directors rely on people staying silent. We're asking the public to help us change that.’
Calls to Crimestoppers are anonymous so it is hoped the new initiative will give investigators at the Insolvency Service better insight into those disqualified directors breaking the law.
Kate Johnston, director of business development at Crimestoppers, said: ‘We know people may have concerns but feel unsure about speaking up. That’s why Crimestoppers is here. You can tell us what you know, 100% anonymously, and your information could make a real difference in stopping further harm.
‘If something doesn’t feel right, trust your instincts and pass it on. You won’t be asked who you are, only what you know.’
Reporting concerns about disqualified directors helps the Insolvency Service use its full range of enforcement powers, including criminal prosecutions and confiscation of assets under the Proceeds of Crime Act.
Call Crimestoppers on 0800 555111 or report via the website. The charity guarantees complete anonymity, IP addresses are never traced, calls are never recorded, and there is no caller ID or 1471 facility.