The Government has issued its response to consultations on insolvency and corporate governance.
In its paper issued by the Department of Business, Energy & Industrial Strategy (BEIS) on 26 August 2018, the Government has outlined the approach it proposes to take to strengthen corporate governance and modify the UK’s insolvency framework to increase director and shareholder accountability, tighten up on creditor protection measures and establish a new balance between the rights of creditors and the rights of businesses seeking rescue. Modifications to the insolvency regime are expected to include measures that regulate disposals of companies in distress within groups, enhance asset recovery powers of insolvency office holders, increase investigatory powers for the Government’s Insolvency Service and introduce new moratoriums on creditor action as well as a new restructuring arrangement.
The full BEISS paper can be found here
We will be producing an opinion piece on the paper in due course. Meanwhile, with the considerable weight of Brexit related legislation Parliament is going to have to consider and debate over the months ahead, we shall just have to see how time will be found to scrutinise a draft Bill to introduce these latest proposals. We may have to wait a while!
For further information contact Dominic Hopkins, head of Disputes and Litigation at Hewitsons and a member of the Insolvency Lawyers Association. For more information please contact Dominic on 01604 233233 or click here
to email Dominic.