LAWS surrounding registering businesses must be changed, a furious councillor has insisted after 82 companies were set up in a single Leigh street.
Last week, it was revealed the huge number of firms have been set up at addresses in Henry Drive, Leigh without the knowledge of homeowners.
Owen Cartey, Tory councillor representing West Leigh, has been contacted by “a number of concerned neighbours” who have been impacted.
Now, he is calling for legislation around how new companies are registered on Companies House to be updated urgently.
The Government is already considering reforming Companies House as part of the Economic Crime and Corporate Transparency Bill.
He said: “I am grateful that a number of neighbours reached out to the West Leigh Councillor Team on this issue a month ago when we were out canvassing along Henry Drive.
“There is clearly an issue with how easy it is to register a business through Companies House at a UK residential address, especially when we know that financial crimes and fraud are a growing concern.
“I would like to see the Government introduce an amendment to current legislation like the Economic Growth and Corporate Transparency Bill to introduce more checks and defend our neighbours in West Leigh from the insecurity of having our addresses used by unknown directors.
“This case is unfair for the families on Henry Drive who have put up with unaddressed mail and the confusion of having their address used in this way.”
Some homes on the street - which only has roughly 30 houses - have been registered for multiple businesses.
West Leigh ward councillor, John Lamb, added: “I had heard about this, and it is an absolute scam.
“Fraud teams need to get on this and take some strong action.”
A spokesman for Companies House added: “We are sorry to hear about the difficulties these individuals are experiencing and will take action where the law allows. The Government is bringing forth measures to reform Companies House in the Economic Crime and Corporate Transparency Bill. Once in force, the Bill will significantly enhance the role and powers of the Registrar of Companies, so she can become a more active gatekeeper over company registrations.”
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