PracticeConsultingAccountants targeted by director ‘hit squads’

Accountants targeted by director 'hit squads'

Accountants are a 'legitimate target' for new insolvency squads launched this week by the government to target the personal funds of rogue directors behind failed companies.

The Official Receiver will supply multidisciplinary teams of insolvency practitioners, solicitors and other professionals with names of rogue directors.

The Forensic Insolvency Recovery Service (FIRS) teams will pursue the cases on a no win, no fee basis to get money back for creditors.

Nick Beever, an insolvency partner at solicitors Moon Beever and involved in setting up the scheme, said: ‘Accountants, lawyers and professional advisers to rogue directors are legitimate targets if they are negligent.

But the purpose of the scheme is not to bring a flood of actions against accountants.

‘Some rogue directors routinely put companies into liquidation ensuring there are barely sufficient assets left to pay the costs of the liquidation and so frustrate recovery action,’ said senior insolvency partner Frances Coulson of Moon Beever. The DTI’s insolvency offices in the South-East will pilot the scheme with licenced insolvency practioners appointed from Kingston Smith.

www.insolvency.gov.uk

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