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23/09/2008
Insolvency laws should not change, says expert |
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A researcher who produced a report into the UK's insolvency laws has said that the legislation does not need to be changed because of recent high-profile business failures.
Dr Sandra Frisby, who produced the government-commissioned independent review of the Enterprise Act in January, has told the Daily Telegraph that the way bankruptcy is dealt with works very well.
She made her comments in light of suggestions by the government and the Conservative party that the country could do with some new US-style bankruptcy laws.
However, Dr Frisby believes that the "second-chance" business culture inspired by the Act, which was introduced five years ago, means that it will be perfectly adept at dealing with the high number of insolvencies expected to take place over the next year and a half.
She explained: "At the bottom of the market there's clear evidence of a second chance culture, with businesses being offered to other businesses and owner managers. More businesses are being saved.
"What has happened after the Enterprise Act is that it's easier to get into administration. It's easier for practitioners and companies to take control of the entry [into administration] and the strategy, so it becomes faster."  |
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