What happens when a company is wound up in the public interest, but those responsible remain free to manage another business? Or when value has been transferred before insolvency, but the officeholder struggles to recover it?
The Insolvency Service’s Corporate Civil Enforcement Reforms consultation seeks to address both problems. The Insolvency Service investigates corporate misconduct, seeks director disqualification and asks the court to wind up companies in the public interest. However, much of the legal framework supporting that work is nearly 40 years old.
The consultation proposes significant changes. On enforcement, these include five-year disqualification following specified public-interest winding-up orders and…