Dishonest directors face jail time

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.

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