Effect Of The Legal Aid, Sentencing And Punishment Of Offenders Act 2012 On Insolvency Litigation

EDM number 673 in 2014-15, proposed by Mary Glindon on 08/01/2015.
Categorised under the topics of Administration of justice, Companies, Financial services and Insolvency.

That this House notes the recent report by Professor Peter Walton on the likely impact of the Legal Aid, Sentencing and Punishment of Offenders Act 2012 on insolvency litigation; further notes that Professor Walton's empirical evidence shows that from April 2015 the Act will have a negative impact on creditors, including the taxpayer and businesses, as well as the public interest; notes concerns from business groups representing creditors, including the Institute of Credit Management and the British Property Federation; is concerned that more than £160 million owed to businesses and the taxpayer each year could remain with directors or third parties that have wrongly, negligently or fraudulently taken money out of a business as a result of the Act; and calls on the Government to review the legislation before it comes into force in April 2015.

This motion has been signed by a total of 69 MPs.