The Government has scrapped plans to reform the process that leads to rogue directors being struck off.
Despite complaints from insolvency practitioners that staff and budget cuts at the Insolvency Service are allowing unscrupulous directors to escape justice, the Department for Business, Innovation and Skills shelved an initiative to streamline the process for reporting misconduct. The Government said a drive to reduce red tape for the smallest companies was behind the decision. Toby Perkins MP, Labour's shadow small business minister, said: "The Government's approach to regulation means that even sensible changes, supported by the overwhelming majority of insolvency practitioners – including those who are 'micro businesses' – are thwarted. This would have led to a more cost-effective service for the public. You couldn't make it up." Last year, a working group was established to design a simplified online system to replace the "D1 reports" that insolvency practitioners send to the Service.....Read more here: Insolvency Service reform scrapped