§ Mr. SproatTo ask the President of the Board of Trade how many recent representations he has received about companies with debts which declare themselves insolvent208W and are replaced by new companies with similar names run by the same people; what plans he has to take action; what general advice he issues to the creditors of such companies: and if he will make a statement.
§ Mr. Neil HamiltonA few representations have been made to my Department recently on directors of failed companies starting new companies with similar names. Provisions contained in the Company Directors Disqualification Act 1986 and, more specifically, section 216 of the Insolvency Act 1986 address these concerns where companies go into insolvent liquidation. Creditors are advised to report any breaches of the provisions to the liquidator, or my officials at the Insolvency Service.