Insolvency Bill [Lords] — Disqualification orders: unfitness of director — 16 Nov 2000

As amended in the Standing Committee, considered.

Brought up, and read the First time.

I beg to move, That the clause be read a Second time.

Mr. Deputy Speaker (Mr. Michael Lord):

With this it will be convenient to discuss the following: New clause 2-- Disqualification orders: unfitness of director --

I have a great deal of sympathy with the hon. Member for Christchurch, as the problem of rogue traders is serious.

Legislation will be properly framed to undertake the tasks that the hon. Gentleman has identified, one of which will be enacted in the new year--[ Official Report, Standing Committee B , 7 November 2000; c. 105.]

The implementation regulations will designate the Director General of Fair Trading as the lead independent public body who will be empowered to obtain cease and desist orders in respect of all the legislation covered.

It appears that there has been an administrative oversight on the part of our legal representatives. That being the case, we will look to rectify this on Monday morning.

Ten years ago, just before the 1987 election, the Thatcher Government commissioned a report that called me a liar . . . The British Government took away my reputation and good family name after 40 years' hard work. I will not go to my pyramid leaving my children under the shadow of a report that is unfair and untrue. I have seen the arrogance of power at very close quarters. I did not like what I saw. I will campaign for root and branch reform. That is why I gave away £1 million last week to the People's Trust, an independent pressure group dedicated to cleaning up politics.

provides that a director who is prosecuted for not filing accounts can be disqualified on the basis of that single offence.--[ Official Report, Standing Committee B , 7 November 2000; c. 124.]

conclusively proved by showing that in the five years ending with the date of the application he--

has been adjudged guilty (whether or not on the same occasion) of three or more defaults in relation to those provisions.

has been a director of a company which was struck off the register of companies by reason of its failure to deliver company accounts.

conduct as a director of that company makes him unfit to be concerned in the management of a company.

It may have escaped many people's notice that we have a Minister for corporate social responsibility--

a factor other than a material change in circumstance since the person gave the undertaking may be of sufficient importance to persuade the court to make an order . . .--[ Official Report, Standing Committee B , 7 November 2000; c. 122.]

Further directives, including the proposed directive on distance selling of financial services will be added in due course.

marks the end of Mr. Fayed's third foray into public morals.

Motion and clause, by leave, withdrawn.

Brought up, and read the First time.

Motion made, and Question put, That the clause be read a Second time:--

The House divided: Ayes 46, Noes 221.

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