6
Publish convictions for false declarations to Companies House and actions to identify and prosecute offenders.
Recommendation
Confidence in the Companies Register is undermined by errors and inaccuracies. Companies House, an executive agency of the Department, maintains the Register of Companies for England and Wales. The size of the register is growing, which the Department considers reflects international trends and entrepreneurial activity. However, false statements, fake entries, errors and inaccuracies (such as fictional company directors, or individuals named without their consent) can be used to commit crime, including fraud. Making a false declaration to Companies House has been a criminal offence since 2009 under the Companies Act 2006, but this legislation is rarely enforced. There is a record of just one conviction for this offence, in 2018. The Department considers forthcoming legislation following the Economic Crime and Corporate Transparency Bill will provide powers to Companies House to identity-check directors and refuse to register companies. Recommendation 6: The Department, alongside its Treasury Minute response, should set out the total number of convictions for making a false declaration to Companies House, and the actions which are being taken to ensure offenders are identified and prosecuted.
Government Response
A response document is linked to this report, dated 27 June 2023. Response attribution to this recommendation has not been verified. Read the response document.
Source
Committee
Public Accounts Committee
Addressee Bodies
HM Treasury
Timeline
Recommendation age
3.4 yrs
Report published
26 Apr 2023