Disqualification proceedings against company directors were up 17 per cent in the year to March, according to research.

Disqualification proceedings against company directors were up 17 per cent in the year to March, according to research.

Some 2,169 board members of insolvent companies faced disqualification orders, which ban individuals from being directors of a limited company or being involved in its promotion, formation or management for up to 15 years.

The rise is due to credit crunch related insolvency and fraud feeding through the system, suggests the study from City law firm Wedlake Bell, which obtained figures from the Insolvency Service.

Edward Starling, a partner at Wedlake Bell, says, ‘A recession traditionally leads some directors to break the law in a last ditch attempt to save their business or their own personal financial situation. When a company goes bust and an insolvency practitioner gets appointed these irregularities are uncovered.’

The average number of directors targeted by disqualification proceedings at each affected company rose to 2.1 last year, compared to 1.7 the year before.