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8111 10 sort cheats from unsuccessful

11th February 1999
Page 15
Page 15, 11th February 1999 — 8111 10 sort cheats from unsuccessful
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Which of the following most accurately describes the problem?

• Hauliers could face new bankruptcy laws designed to reward "responsible risk takers" and penalise deliberate cheats.

In his first major speech since taking over as Trade and Industry Secretary from disgraced Peter Mandelson, Stephen Byers revealed that he has set up a working group to review insolvency and bankruptcy laws. The group is due to report to him by the end of April.

Byers complains current laws make "no distinction between the responsible risk taker who works hard but is unsuccessful, and those individuals who deliberately set out to cheat their creditors or abuse limited liability."

He wants the working group to come up with proposals to protect responsible entrepreneurs while punishing unfit directors.

These could become part of the Government's planned insolvency bill, which is expected to give a struggling company three months to sort out its finances, with the agreement of its creditors.