THE MINISTRY OF JUSTICE has said it might exclude insolvency proceedings in the latest reform to curb no-win, no-fee litigation cases.
Earlier this year, the government-commissioned Jackson Report was published and included plans to abolish conditional fee arrangements (CFAs), better known as no-win, no-fee deals.
Restricting these types of deals could make it more difficult for insolvency practitioners to pursue fraudulent company directors, to recover greater funds for creditors.
HMRC, as a recurring unsecured creditor, could lose millions of pounds each year from the reforms as practitioners decide against pursuing company directors through the courts.
However, a MoJ spokesman told The Guardian: “We are considering the impact of abolishing CFA recoverability in insolvency and related proceedings. These proceedings can bring substantial returns to creditors, including HMRC.
“We are therefore discussing the specific implications with a view to reaching a satisfactory conclusion.”
The reforms were brought in to reduce the numbers of what are known as ambulance-chasing lawyers in litigation cases.
Insolvency and business recovery firm Gibson Hewitt has recruited a new manager from one of the UK’s top four accountancy practices
A finance assistant at University Hospitals Coventry and Warwickshire NHS Trust (UHCW) is celebrating after being named the top in the world ... read more
Leaders in professional services such as accountancy require a particular skillset. Chief executives in such roles must be able to build consensus for strategic change with a range of client-facing partners, while retaining a lucid focus on service delivery
RSM has announced the appointment of a record 350 trainees across all locations in the UK – expanding the total headcount of the firm by 10%