Insolvency decision is a ‘£480m bonanza for rogue directors’
Submitted by AlisonHoy on
The government decision to end the special arrangement that helped to fund insolvency litigation has met with widespread criticism from business and legal professionals.
The trade body R3 said it would amount to a “half-billion-pound pay day for rogue directors”.
The controversy arose when the government confirmed that from April this year, insolvency litigation will no longer be exempted from the costs regime imposed by the Legal Aid, Sentencing and Punishment of Offenders Act (LASPO).