Our website is set to allow the use of cookies. For more information and to change settings click here. If you are happy with cookies please click "Continue" or simply continue browsing. Continue.

Insolvency Law

Expert guidance on all aspects of corporate and personal insolvency

24 MAR 2011

Is English insolvency law still viewed with, "disrespect and contempt"?

One learned commentator has observed that "Cork was convinced that the prevailing leniency towards directors of insolvent companies was a predominant cause for the disrespect and contempt in which the law was held and that an 'entirely new approach' was required." (Finch, V. Directors' Duties: Insolvency and the Unsecured Creditor, in: Clarke, A (Ed). Current Issues in Insolvency Law, Current Legal Problems, Stevens & Sons, London, 1991, at page 91). Has the approach engendered in the Insolvency Act 1986 ( IA86 i.e. s,213, s.214, s.216) and the Company Directors Disqualification Act 1986 (CDDA86) changed our perception of insolvency law and its use? Have these measures worked or is the English insolvency law still held in disrepute.

The recent File on Four programme would support the pre-Corkian view, i.e. that English insolvency law is still held in disrepute, but for other reasons. R3's recent call for more to be done in terms of disqualification would also support the contention that much remains to be done, as would the OFT report and the plight of the unsecured creditor. Will insolvency law always be viewed with an air of discredit and negativity - not unlike John Wilmot, the 2nd Earl of Rochester (pictured) - or is there some public confidence in the system?

 

Bankruptcy and Personal Insolvency Reports

Bankruptcy and Personal Insolvency Reports

"BPIR is an excellent series, of interest to both corporate and personal insolvency lawyers,...

More Info from £166.00
Available in Insolvency Law Online
Individual Voluntary Arrangements

Individual Voluntary Arrangements

"This is the ultimate statement of where the law on IVAs is to be found in our great common law...

Available in Insolvency Law Online
Subscribe to our newsletters