A recent report by R3, the Insolvency Trade Body has warned that a shortage of resources at the Insolvency Service has meant that unscrupulous company directors are escaping any action against them.
Only 1,151 of 5401 reports (21%) sent by Insolvency Practitioners to the Insolvency Service resulted in a disqualification court order or undertaking, the administrative equivalent. This compares with 27% last year and 45% ten years ago.
R3’s president, Lee Maning said “it is not apathy at the Insolvency Services it is lack of resources. We are reporting “misconduct” and the authorities aren’t acting. Later on, it results in new victims that could have been protected if it wasn’t for the lack of resources. Justice needs to be seen to be done.”… “We need to push up the disqualification rates and make sure those who have been disqualified stick to their terms if we are to maintain public confidence.”
Tim Corfield said “These comments reflect our experience at Griffin & King and an issue we have been highlighting for some time”.
Written by Tim Corfield