R3 welcomes Government announcement on ‘no win, no fee’ arrangements
“We welcome the Government’s decision to delay the implementation of the changes to ‘no win, no fee’ for insolvency proceedings until 2015. The proposed changes, contained in the Legal Aid, Sentencing and Punishment of Offenders Bill, would have made it harder for Insolvency Practitioners to pursue errant directors who had run off with company funds, or in serious cases, committed fraud. This would have cost the business community and the taxpayer hundreds of millions of pounds each year.
“We are pleased the Government recognised the unintended consequences of these proposals. We look forward to working with HMRC and the Insolvency Service to ensure that insolvency litigation will still be viable in the future. Directors, who act improperly and strip value out of businesses, should not be allowed to benefit at the expense of legitimate business.”
Frances Coulson, R3 Council Member
Notes to editors (R3):
R3 is the trade body for Insolvency Professionals, and represents 97% of the UK’s Insolvency Practitioners.
R3 comments on a wide variety of personal and corporate insolvency issues. Contact the press office, or see www.r3.org.uk for further information.
R3 promotes best practice for professionals working with financially troubled individuals and businesses; all R3 members are regulated by one of nine recognised professional bodies.
R3 stands for ‘Rescue, Recovery, and Renewal’ and is also known as the Association of Business Recovery Professionals.
Ministerial statement - http://www.parliament.uk/documents/commons-vote-office/May_2012/24-05-12/17.Justice-ImplementationofPart2oftheLegalAidetc.pdf
R3 Press Office