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Businessmen banned from being company directors
11 May 2011
Following a lengthy and complex investigation by the Department for Business, Innovation and Skills, the four men who were the former directors of MG Rover have been disqualified from acting as company directors for between three and six years.
The four men took over MG Rover back in 2000 and paid themselves millions in pay and pensions leaving the company indebted to the tune of £1.3bn. In 2005, the company collapsed resulting in the loss of 6,000 jobs and sparking an investigation into the directors' business dealings at the company.
The outcome to this investigation should be a stark warning to those who run companies that unacceptable conduct by directors can result in disqualification, criminal punishment or both.
If you are a director of a company and would like to know more about the duties that are placed upon you in your position as a director or you are thinking of setting up a new company and are concerned about what your obligations might be, howell jones' Business Services team can guide you through the potential pitfalls and problems.
Nick Ball, solicitor - Business and Commercial
