Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, whether she has powers to review substantial transfers of assets between private companies when the proposed transaction may (a) be over value and (b) present significant risks to the employees and suppliers of the company purchasing the assets.

Directors of a company must act in good faith to promote its success for the benefit of its members as a whole. When taking decisions, directors must have regard to the interests of employees and the need to foster business relationships with suppliers, customers and others.

My Rt Hon. Friend the Secretary of State for Business and Trade has powers to appoint inspectors to conduct confidential investigations into trading companies where information suggests serious corporate abuse and such an investigation would be in the public interest. In an insolvency situation, she has powers to investigate the conduct of company directors.