Disqualifications of directors have fallen 30 per cent since the current government came to power, the lawyers say – just 920 were disqualified in 2012-13, down from 1333 in 2010-11. The lawyers say spending cuts are to blame.
The proceedings are usually brought when a firm fails and the authorities suspect the directors’ conduct makes them unsuitable to run firms again.
But Vince Cable’s department rejected Pinsent Masons’ claims.
“Our reforms will help those who are owed money get compensation where they have suffered loss,” said a spokesperson. “We are also ensuring rogue directors who are banned from running companies abroad, cannot run British firms.”