The board of the CBI has drafted in lawyers to prepare for a prospective insolvency filing ahead of a crunch vote by thousands of its members next week.
Sky News has learnt that the crisis-hit business lobby group has hired an unnamed City law firm to provide advice on directors’ duties under company law.
City sources said on Tuesday that the legal advice was partly focused on CBI directors’ decision-making about continuing to trade the organisation as a going concern.
One said that an adverse outcome from a vote at next week’s extraordinary general meeting would leave its board with little choice but to begin a process to wind it up.
Such a scenario would be complicated by the Royal Charter by which it was incorporated in 1965, they…
Read the full article at: https://news.sky.com/story/cbi-board-takes-advice-on-insolvency-ahead-of-crunch-member-vote-12892913