BATTLE LINES have been drawn between a group of conservative MPs and the insolvency profession over proposals to overhaul bankruptcy law.
The group wants to update the law so that it would be fairer to unincorporated business owners and sole traders. Their proposals will be published today by the "Free Enterprise Group of Tory MPs" led by George Eustice, David Cameron's former spokesman, The Financial Times reports.
However, the insolvency profession has hit back that personal insolvency laws in the UK are some of the best in Europe.
Frances Coulson, (pictured) president of insolvency trade body R3, said the changes would be unnecessary and expensive.
The group proposals would see the UK adopt a US style Chapter 11 bankruptcy which gives companies breathing space from their creditors without facing liquidation.
Adam Marshall, policy director at the British Chambers of Commerce said the ideas were a "step in the right direction".
However, KPMG restructuring partner Jim Tucker said the UK already has a mature and respected insolvency regime.
"In fact a number of European companies migrate to the UK to complete their restructuring," he said.
Eustice hopes the changes to bankruptcy law will help overcome the fear of failure that discourages entrepreneurs.
You may also like
If budgeting is to have any value at all, it needs a radical overhaul. In today's dynamic marketplace, budgeting can no longer serve as a company's only management system; it must integrate with and support dedicated strategy management systems, process improvement systems, and the like. In this paper, Professor Peter Horvath and Dr Ralf Sauter present what's wrong with the current approach to budgeting and how to fix it.
In this white paper CCH provide checklists to help accountants and finance professionals both in practice and in business examine these issues and make plans. Also includes a case study of a large commercial organisation working through the first year of mandatory iXBRL filing.