In a move likely to have been triggered by the high-profile failures of BHS Ltd and Carillion plc, the Department for Business, Energy & Industrial Strategy (BEIS) is consulting on insolvency and corporate governance. The consultation is intended to update the law to:
- Reduce the risk of major company failures through shortcomings of governance or stewardship
- Strengthen the responsibilities of directors of firms when they are in or approaching insolvency
The consultation was published on 20 March 2018 and the deadline for responses is 11 June 2018. Partner David Ereira discusses the implications.
This article first appeared in the May 2018 issue of PLC Magazine.