Liability - Company directors should be personally liable for misconduct or company failure as part of an overhaul of company rules, according to the UK government.

Company directors should be personally liable for misconduct or company failure, business secretary Vince Cable has said as part of an overhaul of company rules.

Launching the 'Transparency and Trust' paper, Cable outlined measures to improve corporate transparency and strengthen director accountability and disqualification laws.

The proposed reforms seek to “promote growth by improving confidence in the UK as an open and trusted place to invest and do business”.

The paper highlights the need for corporate transparency and director accountability. On transparency, it discusses how the UK will implement its G8 commitment to a central register of company owners and steps to tackle tax evasion, money laundering, and to boost the UK's investment environment.

On accountability, it proposes giving regulators more power to disqualify directors in specific sectors and the possibility that disqualified directors should compensate creditors.

"Greater transparency and improved trust will mean honest entrepreneurs and investors can do business more securely in the UK and not be disadvantaged by those who don't play by the rules," said a Government press release.

Business Secretary Vince Cable said: "A stronger economy depends on investors, employees and the wider public having trust and confidence in companies and those that are running them."

Vince Cable