On 9 July 2018, the House of Commons published a briefing paper entitled "Corporate insolvency: consultations on reform," considering in detail three consultations on insolvency and corporate governance launched since May 2016.
The three separate consultations are reported to have been launched in light of the high profile failures of BHS Ltd and Carillion plc, and with the specific purpose of seeking to ensure the highest standards of behaviour in those who lead and control companies in or approaching insolvency. The three consultations are as follows:
|
Date launched |
Consulting Entity |
Proposals considered |
|
May 2016 |
Insolvency Service |
Creating a new moratorium, helping businesses to continue trading through the restructuring process, developing a flexible restructuring plan, and exploring options for rescue financing. |
|
March 2016 |
Department for Business, Energy & Industrial Strategy |
Holding directors responsible for the sale of an insolvent subsidiary of a corporate group to take proper account of the interests of the subsidiary's stakeholders; reversal of value extraction schemes; investigation into the action of directors of dissolved companies, and strengthening corporate governance in pre-insolvency situations. |
|
April 2016 |
HMRC |
Discussion papers regarding ways to tackle those who deliberately abuse the insolvency regime to avoid/evade tax liabilities. |
The full briefing paper can be found here: