Government consults on reform of insolvency rules

The government has launched a consultation seeking stakeholders’ views on the insolvency rules that set out the detailed requirements for company and individual insolvency procedures in England and Wales to improve their effectiveness

Stakeholders are being asked to share their views on the insolvency rules as they currently stand, including whether they provide an appropriate framework for the UK’s insolvency regime and whether any improvements could be made.

A number of issues have been highlighted which are in need of reform, including the Rules’ abolition of prescribed forms, the new creditor opt-out from communications and the use of electronic communications and filing of documents.

There are also concerns regarding changes to the procedures relating to meetings of creditors and decisions, and provision of further information where an administrator becomes liquidator, as well as a review of the purchase of assets and s216.

The insolvency rules were last updated and implemented in 2017 and responses are welcome from insolvency practitioners, the legal profession, company directors, creditors, business and consumer groups and any other interested parties.

Dean Beale, chief executive of the Insolvency Service, said: ‘The insolvency rules are an integral part of the UK’s insolvency framework, ensuring our insolvency processes operate efficiently and effectively.

‘We welcome responses from all interested stakeholders on how effective the insolvency rules have functioned since their modernisation in 2017, and with suggestions as to how they can be further improved or strengthened.’

The consultation closes for comment on 30 June 2021.

BEIS consultation, First Review of the Insolvency (England and Wales) Rules 2016: Call for evidence

 

Sara White |Editor, Accountancy Daily, published by Croner-i

Sara White is editor of Accountancy Daily, published by Croner-i, and in...

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