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Jim James backs Vince Cable's proposals to change punishments
A NORTH-EAST business insolvency expert has praised Government plans to clamp down on rogue company directors.
Jim James, former chairman of insolvency trade body R3 in the North-East and head of corporate recovery at law firm Ward Hadaway, welcomed Business Secretary Vince Cable's plans to change the punishment given to directors found guilty of negligent, reckless or criminal behaviour.
Mr Cable's proposals include increased compensation for people suffering losses from directors' actions, stopping directors who are banned from companies abroad overseeing UK firms, and fresh training to raise directorial behaviour standards.
Mr James said: “The proposals have exactly the right focus on compensation and dodgy directors, but it’s very important that the Government gets the details right, and R3 is looking forward to working with the government on this key area.
“Businesses can fail for any number of legitimate reasons, but when the root cause of any such failures is negligent, reckless or criminal behaviour by company directors, strong sanctions need to be in place to both punish them for their wrongdoing and prevent them from doing the same in the future.
“A great deal of work is going on to help prevent rogue directors from causing unnecessary hardship for employees and suppliers who often bear the brunt of their behaviour, so the recognition of the importance of this ongoing battle is extremely welcome.”
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