Monday, 15 July 2013

Vince Cable adds to red tape burden with more director threats

By James Waterson

VINCE Cable will this morning set out his plans for a national database detailing who ultimately owns every British company, despite business groups warning that he would be adding to the burden of red tape.

The business secretary will also say that directors who act in a “fraudulent or reckless” manner could have to pay creditors from their own pocket, while sector regulators such as Ofcom could gain the power to ban individual directors.

Cable will tell an audience at the London Stock Exchange that the bank executives should be required to prove that ensuring the safety and stability of their firms is their top priority, as opposed to simply making profit on behalf of shareholders.

The policies are designed to increase transparency in business but Matthew Fell of the CBI said the proposals could have inadvertent side effects and would unfairly target certain industries.

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