Disqualification of directors and education requirements, supporting responsible entrepreneurship

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Parry, R. ORCID: 0000-0001-8285-2191 and Shikha, N., 2023. Disqualification of directors and education requirements, supporting responsible entrepreneurship. In: Forward Thinking, a research and technical conference presented by the Insolvency Service 2023, Liverpool, 10 November 2023.

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Abstract

This paper notes that, although the role of a company director is a potentially complex one, involving, inter alia, being subject to various fiduciary duties to the company and others arising from being appointed to, or acting in that capacity, virtually anyone can be appointed to or act in that role. Given the problems that have arisen in the complicated laws that apply to directors in the lead up to the insolvency of a company, as well as recurring problems of phoenix companies and rogue traders, we consider whether education might usefully have an innovative role in improving the support available to directors of companies which have failed, as well as raising standards of directorship.

We note that one purpose of director disqualification is to improve standards among directors, but it presently lacks a rehabilitative element and we consider whether education could be a more effective way to bring about such improvements. We also consider the potential of a programme for directors who have experienced company failures and have not been disqualified. Drawing upon examples of education being used to raise standards in other contexts, as well as some educational theories in relation to adult learners, the paper casts fresh light on ways in which education might enhance the existing system, both by strengthening the disqualification system and by supporting directors who are outside the disqualification system to start again after a failure.

Item Type:

Conference contribution

Creators:

Parry, R. and Shikha, N.

Date:

November 2023

Identifiers: