Clampdown will see failed directors barred from boards
Failed directors in Northern Ireland are now more likely to face disqualification from sitting on company boards as the Northern Ireland Insolvency Service (NIIS) flexes it legal muscle, according to international law firm Pinsent Masons.
Lawyers in its Belfast office found that applications made under the Companies Directors Disqualification (NI) Order 2002 have more than doubled over the last year from 23 in 2009/2010 to 49 in 2011/2012.
The trend is in contrast to the rest of the UK where director disqualifications have fallen over the same period.
"Northern Ireland now accounts for almost 10% of the total such applications made by UK insolvency authorities - up from 3% only a couple of years ago," Laurence Spencer, Head of Restructuring at Pinsent Masons in Belfast, said.
And it seems the court service is are becoming increasingly more likely to approve applications to have directors struck off here.
In 2009/10 none of the proceedings brought to the Northern Ireland Court Service were successful, while last year 10 out of 49 applications resulted in disqualification orders.