Following a number of corporate governance failures in situations of insolvency, the Government has published a consultation paper (located here) aimed at cracking down on directors and employers behaving irresponsibly. These reforms will give the regulatory authorities much stronger powers to come down hard on abuse and to make irresponsible directors bear the consequences of their actions. Greg Clark
Responses are required by 11 June 2018.
Sale of Businesses in Distress
Although directors of an insolvent company must act in the best interests of that companys creditors, there is no wider duty in a group context.
To encourage directors selling an insolvent subsidiary within a corporate group to consider subsidiary st…
Read the full article at: http://www.jdsupra.com/legalnews/u-k-government-publishes-guidance-on-17273/