Insolvency

Department for Business, Energy and Industrial Strategy written question – answered on 4th April 2018.

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Photo of Lord Flight Lord Flight Conservative

To ask Her Majesty's Government, in the light of the possible barriers to resolving cross-border insolvencies post-Brexit, what assessment they have made of the case for reforming the UK's corporate insolvency framework to ensure that it is fit for purpose.

Photo of Lord Henley Lord Henley Parliamentary Under-Secretary (Department for Business, Energy and Industrial Strategy)

The exact future relationship between the EU and UK on civil judicial cooperation, including the recognition of insolvency and restructuring procedures and judgments, is subject to negotiations with our EU partners. It is in the interests of the UK and the EU that there continues to be an effective, and fit for purpose, framework for resolving cross-border legal disputes. The Government has made clear that an effective framework of civil judicial cooperation is an important part of the deep and special partnership we want to establish with the EU.

The Government keeps the UK's corporate insolvency framework under review to ensure it is fit for purpose and in May 2016 published its Review of the Corporate Insolvency Framework consultation. A summary of responses to that consultation was published in September 2016 and the Government will set out the way forward for the proposals in its response later this year.

The Government is currently consulting on a package of insolvency and corporate governance measures to strengthen the responsibilities of directors of companies that are in or approaching insolvency in order to reduce the risk of major company failures and to ensure the UK remains one of the best places to start and grow a business. The consultation is open until 11 June 2018.

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