Reckless bosses face ban

Bosses who “recklessly” flog firms they know will fail could be disqualified from being a company director under government plans to be announced today.

Ministers are also proposing to claw back money for workers and other creditors left out of pocket through “inappropriate asset stripping”. The clampdown comes in the wake of a series of corporate scandals, from the collapse of Carillion to Sir Philip Green’s sale of BHS, where the actions of former business owners and directors have been called into serious question. Business Secretary Greg Clark said “lessons should be learned and applied.”

The proposals include disqualifying or holding directors “personally liable” when it’s found that they have sold a struggling company or offshoot “recklessly or knowing it would fail.”

The Insolvency Service would also get powers to investigate directors of dissolved companies.