Company boss bans show record rise

Competition minister Melanie Johnson gets tough on crooked bosses

The number of people banned from running businesses surged by nearly a quarter in the past six months, official figures have shown.

A total of 935 company bosses were banned between March and September 2001, 24% up on the previous six-month period, the Department of Trade & Industry said.

The increase is due to the introduction last year of fast-track procedures allowing the DTI to disqualify company directors without going to court.

"Dodgy directors tarnish the image of the vast majority of legitimate businesses and often leave debts and misery in their wake," said Competition Minister Melanie Johnson.

"These figures should serve as a warning - we will not let you get away with it."

15-year ban

Disqualification orders are aimed at preventing corrupt company bosses from setting up new businesses as soon as their dishonest practices are exposed.

Crooked bosses can be banned for up to 15 years.

The construction and demolition sector had the highest number of directors disqualified in the six months to September 2001, accounting for 103 of the total.

The high-tech computer services industry was ranked second in the dishonesty league with 75 suspensions, closely followed by the textile and clothing sector with 73.

London and south-east England accounted for 35% of the most recent disqualification orders, followed by the north of England with 20%.

Fifty-seven percent of the latest banning orders were served under the new fast-track procedures, which allow dishonest directors to avoid expensive legal fees by agreeing to be disqualified.