Slide in disqualifications not caused by virtue
A drop in the number of director disqualifications should not be interpreted as evidence of improved behaviour by company bosses, according to Grant Thornton.
The number of directors banned between 2003 and 2004 fell to a five year low of 1,527, but Nick Wood, a partner with the firm, said the change was a result of the reduction in company insolvencies.
They fell 20%, from 3,984 to 3,290 over the same period, the Financial Times reported.
That helps to explain the drop in disqualifications, which had previously stood consistently at more than 1,700.
The period also saw an 11% rise in the number of out of court disqualification orders, which now stand at 84% of the total.