UK: INDEPENDENT SCRUTINY OF CONNECTED PARTY PRE-PACK SALES TO BE MADE MANDATORY

The Insolvency Service has said that the UK Government has announced it will bring forward new laws requiring mandatory independent scrutiny of pre-pack administration sales where connected parties – such as the insolvent company’s existing directors or shareholders – are involved in the purchase.  The move is intended to improve confidence and transparency, giving the general public and creditors reassurance that their interests are being protected alongside those of the distressed business.

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/922230/Draftregulationstext_1.pdf

Also published on 8 October was a report on the outcome of review of industry reforms to pre-pack sales in administration.

https://www.gov.uk/government/publications/pre-pack-sales-in-administration

 

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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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