Company directors are dodging measures designed to stop abuse of the insolvency system so that they can avoid paying their creditors, new research suggests.
Experts have expressed concern about the number of phoenix companies, which are created by directors after a firm is put into whats known as a pre-pack administration.
In a pre-pack, a companys assets are sold before an administrator is appointed. The company can then legally start up again under a new name, but often the same directors, or people linked to them, buy up the assets, while creditors are left with unpaid invoices.
Despite the potential for abuse, just 23 such sales were referred for scrutiny in 2017 by the Pre-Pack Pool, the independent review bo…
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