Vince Cable concerns emerge over opaque insolvency probe rules

Sources indicated that Cable is a critic of the current system and has flagged that it is too hard to prove culpability.

Cable is also critical of what he calls the “opaque” investigation process, it is understood. At present, The Insolvency Service does not publish the findings of investigations to encourage affected individuals to disclose as much information as possible.

Cable’s views emerged after the Insolvency Service told Retail Week in July that it had ruled out action against the former directors of Comet after a two-year investigation into its 2012 collapse.

The investigation was kicked off by Cable in December 2012 to look into the circumstances of the electricals retailer’s administration.

The Insolvency Service found there were “insufficient grounds to take any action against the directors” over the administration that cost 6,000 jobs.

Comet’s directors were investigated under section six of the Company Directors Disqualification Act, which could have resulted in a disqualification of between two and 15 years.

An Insolvency Service spokesman said: “Director disqualification law was strengthened earlier this year enabling the Secretary of State to compel directors and third parties to furnish information and the court to also take into account evidence of previous company failures and convictions in other jurisdictions.”