Insolvency consultation launched on EU's minimum standards

The Insolvency Service is seeking views on whether the European Commission’s recommended approaches to business failure would have the desired effect. In March 2014, the Commission set out minimum standards for member states to implement which would enable the efficient restructuring of businesses in financial difficulty. Responses to the recommendation must be submitted by 17 March 2015.

The Commission suggests there are discrepancies between national restructuring frameworks meaning businesses are discouraged from establishing themselves in different member states. It therefore claims minimum standards should be adopted across the EU so the difficulties in restructuring cross border groups of companies are removed.

The purpose of the consultation

The consultation is asking for comments on:

  • whether the implementation of the minimum standards would have the effect the Commission desires
  • how the UK currently compares against the minimum standards

These responses will be used to inform the UK’s response to the Commission’s review of the Recommendation. This is likely to occur in autumn 2015.

Responding to the consultation

Responses can be emailed to policy.unit@insolvency.gsi.gov.uk by 17 March 2015.

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