| You may have heard in the press about the Bill passing through parliament to hold directors of dissolved companies to account – There’s been quite a bit of scaremongering about it.
So let’s put the record straight…
The Bill is aimed at rogue directors…
Principally those who have abused government support during the pandemic…
It’s not aimed at those directors who have acted perfectly properly and are merely using the cheapest and best process, given their circumstances, to bring their company to an end…
It’s designed to eliminate the need for the government to restore to the register and put a company through a compulsory liquidation where it believes there has been wrongdoing…
It enables the government to obtain:
(1) The disqualification of the miscreant directors; and
(2) A compensation order forcing the director(s) to reimburse the government for its losses…
It is not a gamechanger in deciding which process to take to close a company because…
The strike off route is still available…
And most certainly it is not a licence for IPs to print money by advising directors down an inappropriate route.
If you’d like to read the Bill, which has the long title ‘Rating (Coronavirus) and Directors Disqualification (Dissolved Companies) Bill’, click here.
Here’s a reminder about my Insolvency Wizard – an online tool for directors of companies that are on the cusp of insolvency, aimed at helping them make the right decision.
It’s free…. quick… simple… anonymous… and without any commitment.
All the best
Paul Brindley FCA Licensed Insolvency Practitioner 01902 672323 / 07813 102014 |