This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.bbc.co.uk/news/uk-27079682

The article has changed 2 times. There is an RSS feed of changes available.

Version 0 Version 1
Vince Cable plans 'rogue directors' crackdown Vince Cable plans 'rogue directors' crackdown
(about 11 hours later)
People convicted of commercial crimes overseas could be banned from running UK firms in a bid to tackle "rogue directors", Vince Cable has said.People convicted of commercial crimes overseas could be banned from running UK firms in a bid to tackle "rogue directors", Vince Cable has said.
The business secretary said dishonest directors could cause "huge" harm.The business secretary said dishonest directors could cause "huge" harm.
UK criminals can already be banned as directors, and Mr Cable wants the same for those committed overseas.UK criminals can already be banned as directors, and Mr Cable wants the same for those committed overseas.
The Department for Business, Innovation and Skills (BIS) said the measures are due to be tabled in the Parliamentary session which ends in spring 2015.The Department for Business, Innovation and Skills (BIS) said the measures are due to be tabled in the Parliamentary session which ends in spring 2015.
They would mean "stronger deterrents" and "more robust sanctions" for the "rogue minority".They would mean "stronger deterrents" and "more robust sanctions" for the "rogue minority".
'Cooking the books''Cooking the books'
It highlighted examples - many targeting older people - which had cost investors millions of pounds.It highlighted examples - many targeting older people - which had cost investors millions of pounds.
In one example people were encouraged to invest in a company which was "cooking the books" to hide the fact it was insolvent.In one example people were encouraged to invest in a company which was "cooking the books" to hide the fact it was insolvent.
In another rogue practice, it said investors were encouraged to buy land which they were told would increase in value once planning permission was granted - only to find out this was never likely to happen.In another rogue practice, it said investors were encouraged to buy land which they were told would increase in value once planning permission was granted - only to find out this was never likely to happen.
BIS's proposals include allowing the government to ask courts to make rogue directors pay compensation to "put money back in the pockets of victims" - though the final decision would remain with the courts.BIS's proposals include allowing the government to ask courts to make rogue directors pay compensation to "put money back in the pockets of victims" - though the final decision would remain with the courts.
It also said judges should be required to consider a "wider range of matters" when deciding whether to disqualify someone from being a director.It also said judges should be required to consider a "wider range of matters" when deciding whether to disqualify someone from being a director.
These matters would include "previous business failures, the nature of any losses, overseas conduct and breaches of specific laws".These matters would include "previous business failures, the nature of any losses, overseas conduct and breaches of specific laws".
It added: "Overseas directors convicted of an offence relating to a commercial matter overseas could be barred from being a director in the UK."It added: "Overseas directors convicted of an offence relating to a commercial matter overseas could be barred from being a director in the UK."
People convicted of commercial offences - such as stealing company funds or involvement in fraudulent trading - in the UK can be disqualified as directors, and jailed for up to two years if they breach the disqualification.People convicted of commercial offences - such as stealing company funds or involvement in fraudulent trading - in the UK can be disqualified as directors, and jailed for up to two years if they breach the disqualification.
'Down the drain''Down the drain'
About 1,200 directors are disqualified in the UK each year, for periods ranging from two to 15 years.About 1,200 directors are disqualified in the UK each year, for periods ranging from two to 15 years.
Mr Cable said the vast majority of directors "run their businesses in the right way" - but some people had "suffered unnecessary losses as a result of rogue behaviour".Mr Cable said the vast majority of directors "run their businesses in the right way" - but some people had "suffered unnecessary losses as a result of rogue behaviour".
"These measures will protect the British economy and our reputation as a good and fair place to do business by banning directors who have already been convicted of offences overseas from running British companies," he said."These measures will protect the British economy and our reputation as a good and fair place to do business by banning directors who have already been convicted of offences overseas from running British companies," he said.
"Rogue directors can cause a huge amount of harm in terms of large financial losses, unnecessary redundancies and lifelong investments going down the drain.""Rogue directors can cause a huge amount of harm in terms of large financial losses, unnecessary redundancies and lifelong investments going down the drain."
According to BIS, the economy is saved around £100,000 for every director disqualified because of the "detrimental" effects their actions would otherwise have caused.According to BIS, the economy is saved around £100,000 for every director disqualified because of the "detrimental" effects their actions would otherwise have caused.
Christian May, from the Institute of Directors, told BBC Radio 5 live cases of rogue directors were "thankfully not very common at all".
The vast majority, he said, were "working hard, in the interests of their organisation".