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Detail of outcome
We will take steps to strengthen the insolvency framework in cases of major corporate failure by:
- taking forward measures to ensure greater accountability of directors in group companies when selling subsidiaries in distress
- legislating to enhance existing recovery powers of insolvency practitioners in relation to value extraction schemes
- legislating to give the Insolvency Service the necessary powers to investigate directors of dissolved companies
- when they are suspected of having acted in breach of their legal obligations
We will also create alternative procedures to support business rescue
We will take forward the following actions:
- strengthen transparency requirements around complex group structures
- enhance the role of shareholder stewardship
- strengthen the UK’s framework in relation to dividend payments
- bring forward proposals to improve board-room effectiveness
Where necessary we will consult further.
Detail of feedback received
We received 93 responses to the consultation from a range of stakeholders, including:
- professional advisers (such as legal and consultancy firms and insolvency practitioners)
- professional associations
- business and trade representative groups
- individual businesses
- institutional and retail investors (including those managing large pension funds)
- academic institutions
- think tanks
- trade unions and wider society bodies
We held discussions and attended briefings and events with many of those that responded, as well as with other government bodies such as regulators.
This consultation puts forward a number of measures to improve corporate governance in firms that are in or approaching insolvency.
It also seeks views on some other aspects of the wider corporate governance framework and whether these are working as they should.