The penalty facing the UK’s five million company directors was unveiled in a White Paper on modernising company law. Johnson said: ‘I think it’s a substantial deterrent. It’s an entirely new criminal offence.’
Directors’ duties will be set out in statute with guidance on their obligations. A requirement to prepare a detailed operating and financial review outlining the performance and future direction of a business was also included in the proposals.
This is the first time a government has attempted to update company law since it was created 150 years ago.
For more on the company law review go to our site special.