PracticeConsultingGovernment pushes on company director ‘trustworthiness’

Government pushes on company director 'trustworthiness'

Insolvency minister Kim Howells has reaffirmed the government's commitment to ensuring company directors are 'competent and trustworthy'.

Speaking after former record bankrupt William Stern and his son Mark Stern were disqualified from acting as directors yesterday after the High Court found them to be unfit to be company directors, Howells said: ‘Directors hold a privileged position in society.

‘It is only fair and reasonable that we expect them to be competent and trustworthy. If they fall below these standards we will take action to disqualify them. This is a message that should be put up in every boardroom.’

William Stern, whose second property empire went into insolvent liquidation with debts totalling more than £14m, was disqualified for 12 years and Mark Stern was disqualified for 4 years.

After being discharged from bankruptcy in 1985 William Stern built up his second property empire. The court heard how Stern and his son traded at the risk of creditors and drew out large sums of money, which appeared to have no basis, between 1990 and 1994 even though creditors of the companies controlled by them were being left unpaid.

The DTI said any person with information to suggest that anyone has acted in contravention of this provision should telephone the Disqualification Hotline on 0845 601 3546

Government to give creditors more defence against banks

Related Articles

5 tips for SMEs to protect cash flow

Accounting Software 5 tips for SMEs to protect cash flow

5m Alia Shoaib, Reporter
Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

Consulting Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

11m Stephanie Wix, Writer
Managing partner Q&A - the year ahead: Richard Toone, CVR Global

Accounting Firms Managing partner Q&A - the year ahead: Richard Toone, CVR Global

12m Kevin Reed, Writer
Deloitte 'self-imposes exile' on government contracts to defuse PM row

Accounting Firms Deloitte 'self-imposes exile' on government contracts to defuse PM row

12m Kevin Reed, Writer
Managing partner Q&A - the year ahead: Julie Adams, Menzies

Accounting Firms Managing partner Q&A - the year ahead: Julie Adams, Menzies

12m Kevin Reed, Writer
Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

Business Regulation Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

1y Kevin Reed, Writer
Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

Audit Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

1y Kevin Reed, Writer
New head of equity capital markets for KPMG

Accounting Firms New head of equity capital markets for KPMG

1y Stephanie Wix, Writer