questionText: To ask the Secretary of State for Business and Trade, whether her Department has made an assessment of the potential merits of (a) introducing measures to hold company directors to account for businesses going into administration, (b) giving employees more security by way of secured creditor status in respect of redundancy payments and arrears of pay, (c) putting in place a statutory duty on insolvency practitioners to pay out outstanding wages and notice pay as the first duty when a company ceases to trade as a result of an insolvency.
answerText: Measures to hold directors to account already exist. When a company enters administration, the administrator has a legal duty to report to the Insolvency Service on the directors’ conduct. The Insolvency Service may seek the directors’ disqualification wh...
heading: Insolvency