Former directors of Kids Company, the London-based charity, are facing directorship bans of up to six years, the Insolvency Service announced today.
All nine former directors, including the BBC's former creative director Alan Yentob, will be taken to court over allegations of mismanagement.
Chief executive Camila Batmanghelidjh was not a director when the charity collapsed in August 2015, but the Insolvency Service will argue she effectively acted as one and should therefore be blocked from running other companies.
Kids Company closed its doors after the Metropolitan Police launched an investigation into abuse at the charity. In a report in February 2016, MPs concluded that an "extraordinary catalogue of failures" had led to the charity's demise and that its trustees engaged in "wishful thinking and false optimism".
The charity worked with thousands of children and young adults to help those who faced a variety of social issues including gun crime, gang violence and neglect.
Kids Company received millions in public money, and former Prime Minister David Cameron backed a £3m government grant for the charity just weeks before it folded.
A spokesperson from the Insolvency Service said: "We can confirm that the Insolvency Service has written to the former directors of Keeping Kids Company informing them that the business secretary intends to bring proceedings to have them disqualified from running or controlling companies for period of between two-and-a-half and six years."