European Commission recommendation on business failure and insolvency: Call for evidence
Read the full outcome
Detail of outcome
In March 2014 the European Commission issued a Recommendation considering a new approach to business failure and insolvency. The objective of this Recommendation was: “to encourage Member States to put in place a framework that enables the efficient restructuring of viable enterprises in financial difficulty” and to “give honest entrepreneurs a second chance”.
It sets out minimum standards for how it suggests this could be achieved. As part of the Recommendation, the Commission promised to review the Recommendation after 12 months. The attached is the UK’s contribution to the review, following the call for evidence that was conducted in February to March 2015.
We received 19 responses to this consultation, but are publishing 18 as one is from an individual who has not provided permission to publish.
Original call for evidence
Call for evidence description
In March 2014 the European Commission issued a Recommendation considering a new approach to business failure and insolvency. The objective of this Recommendation was: “to encourage Member States to put in place a framework that enables the efficient restructuring of viable enterprises in financial difficulty” and to “give honest entrepreneurs a second chance”. It sets out minimum standards for how it suggests this could be achieved.
Action required
The Government invites industry experts and other stakeholders to consider whether implementation of the minimum standards set out in the Recommendation, by member states, would really have the effect the Commission desires, and how the UK currently compares against the minimum standards set out. The call for evidence will close on 17 March 2015.