Creditors believe the current disqualification regime for company directors is too lenient, with nearly three-quarters demanding stricter punishment for disqualified directors, a survey by the Insolvency Practitioners Association found.
Seventy-eight percent of creditors said disqualified directors should be banned from buying back into their failed companies, with the majority saying they would be happy to receive less money to prevent directors and their associates buying the assets of a failed company.
IPA president Keith Goodman said: ‘I am concerned that creditors should feel so strongly against a move towards a more forgiving rescue culture.’
‘Historically it has been the rescue-orientated procedures that have provided the best returns to creditors but these survey results indicate that creditors are less concerned about getting their money back and more intent on exacting revenge on failed directors.’
Goodman added the government should do more to promote the merits of its legislation among creditors, especially given the current economic climate.
Harrison Beale & Owen will (HB&O) have a new chairman and managing director at the helm for 2017
Satvir Bungar promoted to managing director in the mergers and acquisitions team
Carolyn Brown appointed as the first head of client legal services practice RSM Legal
UK senior partner Phil Verity has been elected for a second term at Mazars