New protection against identity fraud for company directors

laptop manNew laws to help protect company directors from identity fraud and personal harm have been introduced by the government.

The Companies (Disclosure of Address) (Amendment) Regulations 2018, which come into force by the end of summer 2018, make it easier for directors to remove personal addresses from the company register.

Directors will have the option to replace their personal address with an alternative, such as a company address, where they can still be contacted to ensure companies meet their legal requirements.

The changes come after research by fraud prevention organisation Cifas found that company directors are twice as likely to be the victims of identity fraud, and are fraud victims in one in five recorded cases.

The new laws will also ensure transparency in legal information as public authorities such as the police, the Insolvency Service and the Pensions Regulator will still be able to access directors’ information, such as their personal address.

Business Minister, Andrew Griffiths, said:

"These new laws will protect new and existing business owners from potential harm and identity fraud, while ensuring we maintain our high standards of corporate transparency."

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See also

Understanding directors' duty to avoid conflict of interest