§ John MannTo ask the Deputy Prime Minister what the legal liability is of the shareholders of arms-length management organisations if their ALMO goes bankrupt. [159460]
§ Keith HillThe normal principles of company and company insolvency law apply to Arms Length Management Organisations (ALMOs). ALMOs are normally set up by local authorities as companies limited by guarantee. The local authority would not normally have any legal liability if an ALMO became insolvent, but each case will turn on its own facts. The authority would, however, remain statutorily responsible for providing and managing the housing stock.