Kids Company boss Camila Batmanghelidjh faces company disqualification
Former Kids Company boss Camila Batmanghelidjh and the charity's former chairman Alan Yentob face being disqualified from running companies under proceedings brought by the Government.
The youth organisation folded amid a storm of controversy in August 2015 - just days after receiving a £3 million Government grant in a final bid to keep it afloat.
The Insolvency Service has written to the former directors of Keeping Kids Company informing them that Business Secretary Greg Clark intends to bring proceedings against them.
An Insolvency Service spokesman said: "We can confirm that the Insolvency Service has written to the former directors of Keeping Kids Company informing them that the Business Secretary intends to bring proceedings to have them disqualified from running or controlling companies for periods of between two-and-a-half and six years.
"As this matter will now be tested in the court it is not appropriate to comment further."
The proceedings will name all nine former directors; Sunetra Devi Atkinson, Erica Jane Bolton, Richard Gordon Handover, Vincent Gerald O'Brien, Francesca Mary Robinson, Jane Tyler, Andrew Webster and Mr Yentob.
The former chief executive Camila Batmanghelidjh was not formally a director at the time the charity collapsed, however the proceedings will allege that she acted as a de facto director and should therefore also be disqualified from running or controlling other companies.
Mr Yentob is a former BBC creative director, while Mr Handover was previously a boss of WH Smith.
The intention to bring disqualification proceedings follows an investigation into Kids Company by the Insolvency Service.
The Insolvency Service said the next step in the process would be the filing of proceedings in the High Court.