New 15-year ban threat for company directors
Directors on company boards that breach competition law in the future could be banned for up to 15 years, under new proposals put forward by the Office of Fair Trading.
The OFT will conduct a public consultation on this proposal once the Enterprise Bill – reforming bankruptcy and competition law – becomes law.
In its proposed guidance, the OFT’s maximum penalty would be a 15 year exemption from being a director of a company, acting as a receiver of company?s property or acting as an insolvency practitioner.
In addition, under a Competition Disqualification Orders a director found to breach competition law, would be personally liable for all of the relevant debts of the company.
Businesses and law firms are being invited to comment on the guidance to improve its clarity. Consultation will last for a maximum of 12 weeks and will end on 26 September 2002.