Government cracks down on insolvent directors

The average length of disqualifications for directors of insolvent companies has increased 11.7% since last year.

The average duration of disqualification orders imposed on Directors by the Insolvency Service has climbed to 6.48 years in 2008-09, from an average of 5.8 years of disqualification in 2007-08, according to City law firm Reynolds Porter Chamberlain LLP (RPC).

Disqualification orders ban individuals from being directors or taking part in the creation or promotion of a limited company for up to 15 years.