Thursday, 7 February 2013

UK: Insolvency Service inquiry - BIS Committee publishes report

Yesterday the Business, Innovation and Skills Committee published its Insolvency Service inquiry report: see here (pdf). Amongst other things the Committee stated: "We are strongly of the opinion that the levels of disqualification of errant directors should not be determined by an arbitrary level set in what the Insolvency Service describes as the public interest. We believe that any dilution of enforcement activity would send entirely the wrong message to delinquent directors and recommend that the Department provides the Insolvency Service with sufficient, and if necessary, additional funding to disqualify or sanction all directors who have been found guilty of misconduct." (para. 62).

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