Cable: Directors should be liable for firm failures

<p>Vince Cable says company directors ought to take responsibility for failures.</p>

UK business minister Vince Cable has stated directors ought to take responsibility for when their companies fail.

He has suggested that directors who are deemed to be reckless should also be disqualified from being able to work at another firm.

Individual regulators should be set up to disqualify directors in their particular industries, it was proposed by the Liberal Democrat MP.

"We're proposing tough measures to beef up the system for holding directors to account if they don't play by the rules or take their responsibilities seriously," Mr Cable said.

The minister added "honest, hard-working directors" would not be disadvantaged by the plans.

Simon Walker, director-general of the Institute of Directors, issued a cautious welcome for the proposals but noted businesses can and do fail and warned against punishing company directors too heavily for this.

The UK government recently said tax rises should not be needed after 2015, with spending cuts preferred as a method to cut the budget deficit.

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