Directors – Transparency, Trust and consequences of non-compliance

Directors – Transparency, Trust and consequences of non-compliance

A busy day for Insolvency with Vince Cable’s discussion paper “Transparency and Trust” following the government’s commitment to tackling fraud at the recent G8 Summit.

Whilst the suggestions regarding Companies House are welcome it is hoped they will be as robust as possible, requiring director identification evidence and auditor verification (mirroring the proposals of the Fraud Advisory Panel and R3), as well as proof of beneficial ownership. All too often a change of a date of birth or a misspelling of a name and there is no chance of putting together a true picture of who you are doing business with. There are numerous companies filing accounts purporting to be audited by large and reputable auditors when they are in fact wholly fictitious, and I would suggest this must also be tackled as part of the project.

The proposal that banks should have greater and more specific director duties, and that breach of sector specific duties should be taken into account in disqualification also seems eminently sensible. The other proposal that the procedure takes into account the effect on victims of the delinquent director’s behaviour i.e. losses to others and wider impact on society has good public policy reasoning behind it I would suggest.

Extending the period allowed to the Insolv

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About the author:

Frances gained her LLB (Hons) at Kings’ College, London University in 1983. She then attended Chester College of Law to take what were then the Solicitors’ Final Examinations. She has been at Moon Beever since 1984 where she trained, qualifying in 1986, and a partner since 1988 becoming Managing Partner in 2000. She is also a founder partner of ShawnCoulson, an international association, of which Moon Beever is the London office. She is Head of Insolvency and Business Recovery at Moon Beever running a substantial team of insolvency specialists. She undertakes most areas of personal and corporate insolvency, specialising in contentious insolvency especially cases involving fraud, as well as provisional liquidations and injunctive work generally.

She is Chairman of the Appeal Committee at ACCA and a member of the Insolvency Law Evaluation Panel at the Insolvency Service, and CBI Insolvency Panel as well as a member of Insol, and the IBA and, veering towards the personal, of the NFU, and the Carlton Club.

Frances is a regular speaker in the UK and abroad on insolvency and practice management.

Frances was formerly Chairman of the SPG Committee of R3, the Insolvency trade body representing 97% of licensed insolvency practitioners. She is President of R3 for 2011-2012, and remains a member of its R3 Policy Group.

She is interested in all things equestrian as are her three daughters and her husband, and spends her free time (such as it is) with her family and other animals, riding and trying to improve her strokes at Real Tennis.