Insolvency body aims to beef-up council's powers

Changes: Nick O'Reilly

Errant insolvency practitioners will risk expulsion from leading trade body R3 as part of a move to increase its council’s powers.

An emergency general meeting later this month will vote on a raft of changes to meet the demands of the Companies Act and bring it into line with other bodies.

‘[R3 has] decided it is appropriate to have clearly defined powers to remove someone from our membership, subject to defining a suitable, underpinning and fair process,’ R3 said in an EGM notice seen by Accountancy Age.

‘There may be occasions, unrelated to a regulator withdrawing a licence, for example, where we might consider continued membership of R3 was inconsistent with the way an individual was acting.’

Another significant change will see chief operating officer Graham Rumney crowned R3’s first chief executive, which more accurately reflects his role, the body said.

R3 President Nick O’Reilly said: ‘These proposed changes are in line with requirements of the Companies Act and better reflect R3’s position as it is now and will be for the next five to10 years.’