Fraud squad to interrogate auditors
Corporate investigators from the Department of Trade and Industry are to be given new powers to tackle company fraud and misconduct.
Four new powers will be unveiled in the Companies Bill, to be included in this week’s Queen’s Speech.
They include giving investigators the power to interview auditors in cases under review.
Currently, these powers are limited to interviewing company directors.
DTI Inspectors will also be allowed to search and enter company premises without a warrant and extend legal protection to whistleblowers.
The final power allows the DTI to ask the High Court to force individuals to hand over documents.
At the moment they have to proceed with lengthy criminal proceedings if someone refuses to comply.
If the proposals become law more directors could be prosecuted for corporate wrongdoing.