This is the next in the series of my blogs for the Directors’ Friend.
THE LATEST STATISTICS:
On 28 April 2017, the latest quarterly insolvency statistics were released by the Insolvency Service (‘IS’). By comparison with the first quarter of 2016 company insolvencies have increased across the board.
- Total company insolvencies have increased by 5.3%;
- Creditors Voluntary Liquidations have increased by 5.4%; and
- Compulsory Liquidations have increased by 2.8%.
This would appear to be a reversal of the general decline in corporate insolvencies since the first quarter of 2009. However, according to the IS a recent spike appears to be down to 1,796 personal service companies (PSC’s) entering creditors voluntary liquidation in the final quarter of 2016 following changes to claimable expenses rules.
In addition, individual insolvencies are also in the increase primarily driven by an increase in individual voluntary arrangements.
It would appear that from the position of the well-advised director that the number of director disqualification investigations may also increase going forward bearing in mind the increasing pool from which these investigations can commence.
In addition, prior to responding to director disqualification investigations the well-advised director would do best to consider whether there are any other investigations ongoing and whether or not there is a risk of the IS also seeking compensation on behalf of creditors as well.
My name is Richard Cole. I am a Solicitor who formerly worked at the Insolvency Service carrying out director disqualification investigations. I am now the Directors Friend. Why not contact me to discuss on: +44(0) 1992 558411.
Until the next time…
THE DIRECTORS FRIEND