Asked by: Lord Flight (Conservative - Life peer)
Question to the Department for Business, Energy and Industrial Strategy:
To ask Her Majesty's Government what assessment they have made of the case for introducing reforms to the UK's corporate insolvency framework after the UK went from 13th to 14th in the World Bank's ease of doing business rankings in respect of resolving insolvencies.
Answered by Lord Henley
In May 2016 the Government published its Review of the Corporate Insolvency Framework consultation. The consultation contained a package of proposals to improve the rescue opportunities for financially-distressed companies. A summary of responses to the consultation was published in September 2016.
Following the publication of the summary of responses, the Government has continued to engage with a range of interested parties to further discuss and explore issues raised in responses to the consultation. This further engagement will ensure that any reforms, if necessary, will be fit for purpose and best achieve the Government’s aims of rescuing distressed but viable businesses, preserving economic value and saving jobs.
The Government will set out the way forward for the proposals in its response later this year.
Asked by: Lord Flight (Conservative - Life peer)
Question to the Department for Business, Energy and Industrial Strategy:
To ask Her Majesty's Government, in the light of the possible barriers to resolving cross-border insolvencies post-Brexit, what assessment they have made of the case for reforming the UK's corporate insolvency framework to ensure that it is fit for purpose.
Answered by Lord Henley
The exact future relationship between the EU and UK on civil judicial cooperation, including the recognition of insolvency and restructuring procedures and judgments, is subject to negotiations with our EU partners. It is in the interests of the UK and the EU that there continues to be an effective, and fit for purpose, framework for resolving cross-border legal disputes. The Government has made clear that an effective framework of civil judicial cooperation is an important part of the deep and special partnership we want to establish with the EU.
The Government keeps the UK's corporate insolvency framework under review to ensure it is fit for purpose and in May 2016 published its Review of the Corporate Insolvency Framework consultation. A summary of responses to that consultation was published in September 2016 and the Government will set out the way forward for the proposals in its response later this year.
The Government is currently consulting on a package of insolvency and corporate governance measures to strengthen the responsibilities of directors of companies that are in or approaching insolvency in order to reduce the risk of major company failures and to ensure the UK remains one of the best places to start and grow a business. The consultation is open until 11 June 2018.
Asked by: Lord Flight (Conservative - Life peer)
Question to the Department for Business, Energy and Industrial Strategy:
To ask Her Majesty's Government what plans they have to implement the EU's Insolvency, Restructuring and Second Chance Directive.
Answered by Lord Henley
The proposed Directive on preventive restructuring frameworks, second chance and insolvency measures is currently still under negotiation in Brussels. Given this stage of the process and the ongoing negotiations on withdrawal from the EU, it is not possible to say whether, if adopted by the EU, the provisions would be implemented in the UK.
Similar proposals to those in the draft Directive were consulted on by the Government in the Review of the Corporate Insolvency Framework consultation published in May 2016. The consultation contained a package of proposals to improve the rescue opportunities for financially-distressed companies. A summary of responses to the consultation was published in September 2016 and the Government will set out the way forward for the proposals in its response later this year.