Insolvency expert welcomes 'rogue directors clampdown'

By Lancashire Business View

29 Aug 2018

paul-barber-begbies-traynor-1000x500.jpg
Paul Barber, partner at Begbies Traynor in Preston and chair of the restructuring trade body R3, says new government plans to curb rogue directors will help save jobs.

The proposals aim to stop directors dissolving companies to avoid paying workers or pensions, and will also give struggling companies more time to rescue the business and help safeguard jobs.

Paul said: "We welcome the government’s long-awaited announcement that it is moving forward with its corporate insolvency reforms. As the UK's exit from the EU approaches, ensuring that our insolvency and restructuring regime remains world class will be vital to UK plc’s success.“

The proposals would give the Insolvency Service new powers to ban or fine directors, and follow a number of recent controversies such as the collapse of BHS and Carillion.

Paul said: "R3 members have raised concerns for a long time that some directors are deliberately dissolving businesses to avoid paying their debts. The government’s announcement that it will look to disqualify such directors will be important in ensuring that directors are less likely to walk away from their responsibilities.

"However, R3 would also urge the government to consider how it can work with our profession and make better use of existing powers to tackle wrongdoing. Over the past few years, the number of directors disqualified annually has hovered around 1,200, yet R3’s members find that many cases of misbehaviour they report to the Insolvency Service are not followed up.

"We also want greater coordination between government bodies such as HMRC and the Insolvency Service to identify misconduct in a more timely fashion."

The proposals represent a success for R3’s campaign for a short business rescue moratorium. This would provide a 28-day ‘breathing space’ to allow businesses in distress to put in place a plan to deal with debts and try to avoid insolvency.

R3 has also welcomed plans for a new restructuring tool which it believes should help to rescue viable businesses and save jobs. However, Paul added: "A balance must be struck between ensuring directors are held to account, and giving distressed businesses the chance to be restructured. Measures that focus more on the former will only discourage entrepreneurship and damage the UK’s reputation as one of the most attractive places to do business."

Latest news

1

Breck to deliver £150m of affordable homes over four years Breck Development In Progress

Breck to deliver £150m of affordable homes over four years

18 Jul 2024

2

Business board launches to support county's economic growth Lancashire Business Board

Business board launches to support county's economic growth

18 Jul 2024

3

Commercial landlords: Five tips to avoid tenancy problems Five tips to avoid tenancy problems SOCIAL.jpeg.jpg

Commercial landlords: Five tips to avoid tenancy problems

19 Jul 2024

4

Notarianni Ice Cream Parlour Scoops Up Energy Efficiency Notarianni.jpeg.jpg

Notarianni Ice Cream Parlour Scoops Up Energy Efficiency

19 Jul 2024

5

Thirteen new contract wins in three months for seoBusiness SeoBusiness Contract Wins

Thirteen new contract wins in three months for seoBusiness

19 Jul 2024

Bec Web Strip 980x120
Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
Lancashire Built Environment Conference
BEC 315 X 315 Px
Networking
25 Sep 2024

Lancashire Built Environment Conference

Conference and Exhibition Centre, Winter Gardens Blackpool, FY1 1HL

08:30 - 13:00

RISE - The Academy for Female Leaders and Managers
WENDY BOWERS RISE Illustrstion copy.jpg.jpg
LBV Hub Seminars
11 Jun 2024 - 04 Dec 2024

RISE - The Academy for Female Leaders and Managers

East Lancashire Chamber of Commerce, Clayton le Moors, BB5 5JR

09:00 - 16:30

What are Menopause Action Plans & How to Write One
Menopause Action Plan 2024.png.png
LBV Hub Webinar
19 Jul 2024

What are Menopause Action Plans & How to Write One

~ Online ~, ~ Online ~, ~ Online ~

12:30 - 13:00

Business Networking in Fylde, Blackpool
Blackpool Fylde Image.jpg.jpg
LBV Hub Networking
19 Jul 2024

Business Networking in Fylde, Blackpool

Village Hotel Blackpool, Blackpool, FY3 8LL

07:30 - 09:30

Preston Freelancer MeetUp and Coworking Day
Screenshot 2024-06-13 at 13.55.10.png.png
LBV Hub Networking
30 Jul 2024

Preston Freelancer MeetUp and Coworking Day

Society1 Coworking Space, Preston, PR1 3LT

10:00 - 12:00

Skills Bootcamp in Procurement - Cohort 1
Blue-Modern-Land-Travel-Youtube-Thumbnail-2-1024x576.png.png
LBV Hub Seminars
30 Jul 2024 - 08 Oct 2024

Skills Bootcamp in Procurement - Cohort 1

Community & Business Partners CIC, Blackburn, BB2 3UA

09:30 - 13:00

Scaling your revenue: From zero to £1m in 60 months
CBP-logo LBV.png.png
LBV Hub Webinar
31 Jul 2024

Scaling your revenue: From zero to £1m in 60 months

Online, Online, Online

08:00 - 09:30

Chamber Breakfast Networking
Chamber Logo1.png.png
LBV Hub Networking
31 Jul 2024

Chamber Breakfast Networking

Pye Motors, Morecambe, LA3 3PF

08:00 - 10:00

Online Women's Health Clinic
clinic.png.png
LBV Hub Webinar
06 Aug 2024

Online Women's Health Clinic

x, Online, x

12:00 - 12:00

International Coworking Day Open Day
1.png.png
LBV Hub Social
09 Aug 2024 - 09 Aug 2024

International Coworking Day Open Day

Society1 Coworking Space, Prestin, PR1 3 LT

10:00 - 13:00

Knowledge & Networking: Basic Digital Marketing
Chamber Logo1.png.png
LBV Hub Seminars
12 Aug 2024

Knowledge & Networking: Basic Digital Marketing

Lancaster Golf Club, Lancaster, LA2 0AJ

14:00 - 13:00

Understanding Menopause
menopause.png.png
LBV Hub Webinar
15 Aug 2024

Understanding Menopause

x, Online, x

12:30 - 13:15

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV116 Online Graphic
Subscribe now

Weekly news bulletin