Belfast Telegraph

New rules could empower staff and suppliers in insolvency

By Alan Jones

The UK Government is aiming to give new powers to staff and suppliers affected by large-scale insolvencies such as the collapse of construction giant Carillion.

A consultation is being launched over planned action against "irresponsible" company directors.

Ministers said most companies were run responsibly, but a small number of recent corporate failures such as Carillion and BHS had raised concerns that directors could unfairly shield themselves from the effects of insolvency or even profit from business failures while workers and small suppliers lose out.

Proposals include clawing back money for workers by reversing asset stripping, disqualifying directors who sell a struggling company and giving new powers to the Insolvency Service. Business Secretary Greg Clark said reforms would give regulatory authorities stronger powers against abuse by "irresponsible" directors.

Belfast Telegraph

Weekly Business Digest Newsletter

This week's business news headlines, directly to your inbox every Tuesday.

Popular