Are Bounce Back Loan cases leading to disproportionate director disqualification bans or are they duly deserved? Elliot Green weighs up the evidence.
Is Britain bouncing back? Well, not based on the current economic forecasts it seems and the levels of Creditors Voluntary Liquidations (CVLs) currently sprouting.
The figures are stark. According to the latest data dissemination from the Insolvency Service of the Monthly Insolvency Statistics, May 2023, the number of CVLs for May 2023 was 2,181. This is the highest monthly number since the lockdowns landed.
However, the price of bounce back Britain is not just the loss to the Exchequer. Many company directors may never be able to run a company through the protection of limited liability again, such is the length of the bans dished out. Director disqualifications where bounce back loans are investigated are routinely hitting the 10- or 11-year mark.
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