We have consulted our membership and other interested professionals on this subject through our Policy and Technical Committee. We propose that the time is right for government to commission a major enquiry into corporate insolvency.
We read the EIRWG’s letter to you with interest.
We think that these issues go wider and deeper than the EIRWG sets out and we do not consider that the EIRWG’s proposals are well adapted to current and expected circumstances. We also think the proposals are put forward from a point of view adapted to the interests of only one class of the many stakeholders in a company as it nears or enters financial distress. However, we do agree with the EIRWG that a number of issues arise concerning UK/EU insolvency provisions.
We also agree that the EIRWG is correct to identify that a well adapted corporate insolvency regime is important to helping keep down the cost of capital to companies and help encourage investment and entrepreneurship.
