Insolvency law changes ahead?

[akirk]

https://www.bbc.co.uk/news/business-45302629

Discussion about plans to pursue / penalise directors who use insolvency regulations to continue to profit from a business while leaving huge debts...
Undoubtedly this will start as a headline grabber ref. companies like BHS, and probably not necessarily think through the detail for smaller companies - but hopefully it will be a thoughtful approach... However, about time that those with privilege understand that it also carries responsibility...

[Dixy]

This already happens, having shafted the Government and countless others by wrecking Carillion, Davies is being punished by being made to work for peanuts at HS2

[StevieBee]

Many years ago my fledgling ad agency suffered two significant bad debts. I was a sole trader at the time and spent 18 months working tirelessly to recover without success resulting in bankruptcy.

Although I had no legal obligation to do so, I ensured that all my trade creditors got paid and also, where I was able to, gave them work as a result of reversing what was left of my business into an employed position. This greatly lengthened my 'financial recovery' period which I would say was only complete in the last 10 years or so - having originally gone tits up in 1993.

Meanwhile, the business owners of the two businesses with whom the bad debts originated continued to trade, do very well and enjoy the fruits of their dubious labour. To my knowledge, they went bust at least twice more.

Any criticisms of the change in legalisation will not be heard from me!