The actions of directors can make or break a company's solvency. Robin Tutty looks at a new Act designed to tackle the problem.

  • The 17-section Insolvency Act 2000 is soon to come into force
  • A recent survey found that almost 50% of insolvency cases are due to management failings
  • An estimated 25% of insolvency cases could be prevented with early advice
  • New Disqualification Undertakings will reduce the need for court action
  • Pressure will be put on Directors of failed companies to justify their pre-insovency actions

    • Source

    Electrical and Mechanical Contractor

    Postscript

    Robin Tutty is a partner in the corporate department of City law firm Fox Williams and specialises in recovery and governance issues.