Posted by Stewart Wilkinson, Partner
On 1 September 2016 Withy King LLP merged with Royds LLP. The trading name for the merged firm is Royds Withy King. All content produced prior to this date will remain in the name of the firms pre-merger.
European-wide insolvency laws could be introduced
Momentum appears to be growing behind plans to introduce new European-wide insolvency rules.
The European Commission is drawing up a number of “radical” legislative changes, with a shake-up of insolvency at the heart of their new strategy.
The priorities were outlined in an EU document released yesterday and it is expected that further details about how the regime would work in practice will be made available at the end of the month.
The report said: “The Commission has begun preparatory work with the intention to put in place a minimum harmonisation directive focusing on specific aspects of insolvency.
“Subject to further analysis and consultation, a legislative proposal focusing on specific aspects of insolvency could be envisaged for next year, based on commonly agreed principles and minimum rules which would reduce the differences between the national insolvency regimes while strengthening weaker regimes.”
Supporters of the proposals argue that different rules across the 28 nation bloc created difficulties for some businesses and, in certain circumstances, made it harder for creditors to claw back money.
But plans for a new framework have been delayed for several years, due in part to the political sensitivities involved.
The UK Government is among those who have made their case that existing laws are already up to the standards expected by EU law-makers.
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