DTI seeks tough new powers.

DTI seeks tough new powers.

Proposed legislation could force accountants to co-operate with company investigations

Tough new powers requiring accountants to co-operate in company investigations are being considered as part of a further shake up of company law being considered by the Department of Trade and Industry.

Company advisers, including accountants, auditors, actuaries, banker and lawyers may be caught up in investigations under the new regime proposed from within the Companies Investigation Branch.

But the accountants and other professionals concerned may have to be named at the outset of an inquiry to make it clear who may be involved in an investigation.

The drastic shake up follows mounting concern at the length and cost of some investigations – particularly that of Mirror Group Newspapers, which took nearly nine years and cost #9.6m.

Officials are also concerned that the regime should do more to bolster the government’s campaign against fraudulent conduct and organised crime.

It proposes widening the scope of inquiries to include the businesses and affairs of individuals and partnerships and subsidiaries associated a company subjected to an inquiry. New powers should include a right for inspectors to enter company premises on two days notice to inspect records – with a warrant where entry is resisted; and to impose interim restraining orders during investigations to safeguard creditors, customers and members.

Other powers may include a gagging order for anyone questioned during a confidential investigation to prevent information becoming public.

Another proposed measure is the creation of the power to sack a director against whom there is insufficient evidence for a disqualification.

Officials propose ending the criminal sanction for non compliance – leaving it to the civil courts to enforce co-operation – but keeping criminal sanctions for destroying, mutilating or fabricating evidence.

The DTI is seeking comments by the end of January 2002, with notice where possible by 4 January – suggesting the possibility of legislation in the Queen’s Speech next autumn with enactment during the 2002-3 parliamentary year.

Share

Subscribe to get your daily business insights

Resources & Whitepapers

Why Professional Services Firms Should Ditch Folders and Embrace Metadata
Professional Services

Why Professional Services Firms Should Ditch Folders and Embrace Metadata

3y

Why Professional Services Firms Should Ditch Folde...

In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...

View resource
2 Vital keys to Remaining Competitive for Professional Services Firms

2 Vital keys to Remaining Competitive for Professional Services Firms

3y

2 Vital keys to Remaining Competitive for Professi...

In recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...

View resource
Turn Accounts Payable into a value-engine
Accounting Firms

Turn Accounts Payable into a value-engine

3y

Turn Accounts Payable into a value-engine

In a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...

View resource
Digital Links: A guide to MTD in 2021
Making Tax Digital

Digital Links: A guide to MTD in 2021

3y

Digital Links: A guide to MTD in 2021

The first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...

View resource