§ Mr. MorganTo ask the President of the Board of Trade if he will set up an inquiry into the collapse of the AST Group and its acquisition of the assets of the ASTRA Training Company plc in October 1993, and the transfer of those assets into Firlands Training Ltd in March 1995. [28309]
§ Mr. Jonathan Evans[holding answer 13 June 1995]:I understand that none f the companies mentioned is subject to a winding-up order. Until a company is in compulsory liquidation the Official Receiver cannot exercise his statutory powers of investigation into its affairs.
Under section 7 of the Company Directors Disqualification Act, 1986 the voluntary liquidator has a duty to report any matters of conduct on the part of the directors which he considers makes them unfit to take part in the management of limited companies. In these cases the liquidator has not yet reported, which he is required to do within six months of the liquidation. I can give an assurance that those reports, together with other relevant information will be carefully considered to see whether proceedings should be brought against any individuals concerned in the liquidation of companies within the AST Group.
In addition the Secretary of State has discretionary powers of investigation into a company where there are grounds to suspect fraud, misfeasance or serious misconduct. Officials within the investigation division of my Department will consider whether the information provided constitutes the "good reason" required before I can exercise my discretionary powers to authorise an investigation.