UK's Business Secretary Vince Cable has recommended adopting measures that would make directors personally liable for the debt of the failed companies.

The move would be a part of the overhaul of company laws in the country if accepted by the ministers. He also said that the directors who are deemed to be reckless should be barred from becoming directors of other firms. Mr. Cable will also want the individual regulators to have the authority to disqualify directors in their industries.

The recommendation comes after concerns were raised over the strictness of the company laws. Public confidence has been affected due to a series of scandals including Libor and the mis-selling of PPI and an overhaul in laws is being sought to revive the legal framework. Mr. Cable is set to announce the proposal at an event at the London Stock Exchange.

The Department for Business, Innovation and Skills wants the begin consultations on the statutory duties of directors in key sectors following the recommendations by the Parliamentary Commission on Banking Standards. It also wants factors such as number of previous company failures to be included in director disqualification proceedings.