According to a poll of insolvency experts, carried out by trade body R3, 60% of insolvency practitioners said the scheme was "overly forgiving" towards directors who fail, while over half think directors should receive mandatory financial education before they are allowed to open a business.

The research also found that incompetence or bad management by company directors causes 56% of corporate failures.

R3 president Steven Law said: "Regardless of the economic circumstance, no business will survive with poor management in place. I have seen a good workforce let down and sometimes laid off due to management that do not admit and correct their mistakes."

Members questioned did feel that company failures have some positives, with 47% believing corporate failure can drive directors to be more successful and 84% believing it can actually heighten business acumen.

Law added: "For some directors, the experience of failure can clearly drive them onto greater successes, but I would share concerns that the current regime is, if anything, too forgiving to directors who have failed.

"Clearly, it would not be practical to educate every director before they are appointed, but there must be enough checks and balances to ensure that directors of failed companies should not put creditors and jobs at risk if they are allowed to repeat their mistakes."