Under section 56 of the Company Law Enforcement Act 2001, liquidators of insolvent companies are required to submit reports to the Director of Corporate Enforcement. The Director issued a consultation document on his liquidation functions under this provision. In this consultation document, the Director of Corporate Enforcement said that the evidence from the first tranche of liquidators' reports submitted to him indicated that, in about half of the cases reported on, court action should proceed against the directors of those companies to have restrictions placed on them as directors under section 150 of the Companies Act 1990. The director also reported, more worryingly, that serious misconduct appears to be present in a significant minority, 20%, of insolvent cases.