Former BHS owner Dominic Chappell is set to be banned from serving as a company director for up to 15 years, the Insolvency Service has said.
But Sir Philip Green will escape action over the chain's controversial demise.
The Insolvency Service said it had written to Mr Chappell and three other former BHS directors informing them it intends to bring proceedings against them following its investigation into the retailer's collapse.
Sir Philip - who sold BHS to Mr Chappell for £1 in 2015 - has been told he will face no further action in a move that brings to an end regulatory probes against him over the chain's failure.
Sir Philip's representatives said: "Sir Philip and his fellow directors have co-operated fully with the Insolvency Service since its investigation commenced in May 2016, and welcome this decision."
Mr Chappell and other former BHS directors facing sanctions can now make representations to the Insolvency Service before it files formal court proceedings.
Mr Chappell told the Press Association he has not been notified of the move by the Insolvency Service, adding that he has no further comment to make at this stage.
The Insolvency Service said: "As this matter may now be tested in the court it is not appropriate to comment further."