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R3 have published the following statement:
"R3 – the trade body for Insolvency Professionals
25 January 2013
R3 welcomes exemption on ‘no win, no fee’ arrangements for insolvency
"R3 is pleased to see the exemption for liquidators, administrators and trustees in bankruptcy from the changes to the legislation, which we understood to be for an initial period of 2 years whilst discussions took place on what regime should be applied to litigation by office holders in the long term.
“We hope that the fact that the legislation as drafted does not have a specific time limit means that the Government is considering treating litigation by insolvency practitioners as a permanent exception from the provisions, in the same way that actions for defamation are to be treated in light of the Leveson Report.
“The exemption allows Insolvency Practitioners to pursue errant directors who have run off with company funds, or in serious cases, committed fraud. This costs the business community and the taxpayer hundreds of millions of pounds each year. Directors, who act improperly and strip value out of businesses, should not be allowed to benefit at the expense of legitimate business.”
Frances Coulson, R3 Council Member"
"This is the ultimate statement of where the law on IVAs is to be found in our great common law...