'Phoenix' rate is high
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by Karen Miles • The transport sector has one of the highest disqualification rates for directors running "phoenix" companies within the whole economy, figures released by the Department of Trade and Industry show.
Seven per cent (about 20) of directors in the transport and communications business were banned by the courts from running their companies in the past three months—just behind the engineering sector, the rag trade and the construction and demolition business.
Of all companies in England, Scotland and Wales, those in London and the South-East had the highest numbers of disqualifications. The Northern region was a close second.
Competition and consumer affairs minister Nigel Griffiths says he wants to watch the trends and "name and shame" these directors.
He says: "I am particularly infuriated when one of these companies goes into liquidation and then starts up again with the same directors and with almost the same name. They often have the same staff and equipment and then carry on the same or similar business with a blatant disregard to creditors so that further failure is inevitable. This is the 'phoenix' company and the director is a cowboy."