UK: INSOLVENCY OVERHAUL TO TACKLE ‘PHOENIXING’

On 28 August, Accountancy Daily reported that the UK government has unveiled proposals to shake-up the insolvency regime, including hefty fines or disqualifications for directors who dissolve companies to avoid paying workers or pensions, in response to a consultation on corporate governance  within companies which are in or are approaching insolvency – which ran March to June 2018. The government has now said it will strengthen the insolvency framework in cases of major corporate failure in a number of areas. As well as tackling so-called ‘phoenixing’, where directors dissolve one company and then start up a near identical business with a new name, the new rules would also give financially-viable companies more time to rescue their business.

https://www.accountancydaily.co/insolvency-overhaul-tackle-phoenixing

The UK report is at –

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/736163/ICG_-_Government_response_doc_-_24_Aug_clean_version__with_Minister_s_photo_and_signature__AC.pdf

Author: raytodd2017

Chartered Legal Executive and former senior manager with Isle of Man Customs and Excise, where I was (amongst other things) Sanctions Officer (for UN/EU sanctions), Export Licensing Officer and Manager of the Legal-Library & Collectorate Support Section

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