UK companies with no UK director are x17 more likely to show signs of fraud, says new analysis from Tax Policy Assicates.
Some 900,000 UK companies have no UK directors – all their directors live abroad.
Tax Policy Associates said while UK directors face fines and (at least in theory) prosecution if they file false information with Companies House. Foreign directors are in practice untouchable.
Companies House has now been given a much wider enforcement role. But if this is to mean anything, then all UK companies should have someone in the UK who is accountable when false documents are filed.
It’s an easy problem to solve – we can require all UK companies to either have at least one UK director, or appoint a UK agent who is accountable for the accuracy of the information the company files.
This already happens in Australia, Canada, and Singapore, where you can only incorporate a company if is has at least one local director.
