The number of directors being disqualified in England, Wales and Scotland has increased by 25% since last year.
Figures from the Insolvency Service show there were 1,208 disqualified directors during 2013/2014, up from 969 in 2012/2013.
The last year also saw a 19% increase in the number of director disqualification proceedings issued by the Insolvency Service in England, Wales and Scotland.
The increase in disqualifications is the first since 2010.
Steve Cottee, partner in Pinsent Masons’ restructuring team, said: “It is interesting to see such a significant rise in the number of director disqualifications and orders from last year.
“It may be a sign that the insolvency Service are taking a more robust approach to rogue directors. In any event it is certainly a warning for directors to act in accordance with their fiduciary duties and behave responsibly to creditors.”
The findings come as business secretary, Vince Cable, continues to call for tougher laws to crack down on ‘dodgy directors’.
Disqualified Directors can face bans of up to 15 years depending on the nature and severity of the offence. Disqualifications bar individuals from being a director of a company; acting as receiver of a company’s property; or being concerned in or taking part in the promotion, formation or management of a company.