Nearly six years after the collapse of Carillion in January 2018 with debts in the region of £7 billion, the trial of its five non-executive directors (and one executive director) under the Company Directors Disqualification Act (CDDA) in proceedings brought against them by the Insolvency Service was finally due to get underway today but was dropped by the Insolvency Service at the 11th hour on the basis that it would not have been in the public interest to continue. If the claim had succeeded, the individuals could have been disqualified from serving as directors for up to 15 years. They (and their executive colleagues) have already faced a series of enquiries and investigations. What was the nature of the case they were facing and to what extent were any liability protections which may have been in place prior to Carillion’s collapse apt to protect them? Finally, what lessons, if any, are there here for non-executive directors of other publicly listed UK companies?
‘Enforcement 40’ for 2020
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