We are commended in the March issue of Dear IP, the technical newsletter issued to all insolvency practitioners in the UK by the Insolvency Service, for our efforts relating to the disqualification of the directors of Vinance PLC.
This new act of Parliament received royal assent today. A large part of the Act affects the work done by Insolvency Practitioners and, although many of the changes are not very interesting, others are. For instance, the fraudulent trading and wrongful trading provisions, formerly available only to Liquidators, are extended to Administrators. This should mean that more money can be recovered from delinquent directors although, as ever, the devil will be in the detail!
As of today, the fee for issuing a civil claim worth more than £10,000 has been increased to 5% of the sum claimed, with a maximum fee set at £10,000. When the change was announced by the government in January, it was followed by a consultation that prompted criticism from senior legal figures, as well as the business community. Notwithstanding this, the new fees are now in force.