The Government is planning to bring civil proceedings to disqualify the four directors of collapsed car company MG Rover from being company directors in the future.
Following Monday’s (August 11) decision by the Serious Fraud Office that it would not pursue criminal proceedings against the so-called ‘Phoenix Four’, a Department for Business spokesman said: “The Secretary of State [Lord Mandelson] has been advised that there are good grounds to bring disqualification proceedings. These would be civil rather than criminal proceedings.”
Disqualification, which would be decided by a court, lasts for two to 15 years and bears with it a measure of disgrace in business circles.
The ‘Phoenix Four’, John Towers, Nick Stephenson, John Edwards and Peter Beale, were at the centre of a political and media storm when MR Rover collapsed in 2005 with the loss of more than 6,000 jobs.
A spokesman for the ‘Four’ said they had done nothing wrong that justified disqualification.
Source: Financial Times