Fewer Directors Being Made to Account for Their Actions

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

http://www.griffinandking.co.uk

YOU TELL ‘EM CHRISTINE!

In a hard hitting recent interview with the Guardian, Christine Lagarde, head of the IMF insists its payback time for Greece and makes it clear that the IMF has no intention of softening the terms of the country’s austerity package.

She says Greek parents have to take responsibility for their children being affected by spending cuts. “Parents have to pay their tax” she says.

Greece, which has seen its economy shrink by a fifth since the recession began, has been told to cut wages, pensions and public spending in return for financial help from the IMF, the European Union and The European Central Bank.

“I think more of the little kids from a school in a little village in Niger who get teaching two hours a day, sharing one chair for three of them, and who are very keen to get an education. I have them in my mind all the time. Because I think they need even more help than the people in Athens”.

“As far as Athens is concerned, I also think about all those people who are trying to escape tax all the time”.

Legarde says she thinks equally about Greeks deprived of public services and Greek Citizens not paying their tax.

In recent days the caretaker Greek Government has met to discuss sharp fall in tax revenues – down by one third in a year. Under the terms of the country’s bail out, Athens has agreed to improve Greece’s poor performance for tax collection in order to reduce its budget deficit.

These comments come at a time when most recent polling in Greece is pointing in favour of the anti-austerity parties.

Tim Corfield comments ‘all the problems of Greece were known before the Euro adventure started. Politicians have a lot to answer for here – and what about Spain?.’

Straightalkdebt.com