Business Secretary outlines departmental action following Carillion liquidation

16 Jan 2018 02:31 PM

The business department sets out the steps being taken following Carillion’s liquidation.

The Business Secretary Greg Clark has today (16 January 2018) outlined the steps the business department has taken following the liquidation of Carillion.

Following the appointment of the Official Receiver as liquidator, the Business Secretary has written to the Insolvency Service and the Official Receiverasking that the statutory investigation into the conduct of Carillion’s directors is fast-tracked and extended in scope.

This means the Official Receiver’s investigation will consider whether those who are, or were previously directors of the company may have caused detriment to those owed money, including workers and businesses affected.

Alongside this, the Business Secretary has also written to the chairman of the Financial Reporting Council (FRC), Sir Win Bischoff, and asked it to conduct an investigation into the preparation of Carillion’s accounts past and present, as well as the company’s auditors.

Greg Clark said:

It is important we quickly get the full picture of the events which caused Carillion to enter liquidation, which is why I have asked the Insolvency Service to fast-track and broaden the scope of the Official Receiver’s investigation.

In particular, I have asked that the investigation looks not only at the conduct of the directors at the point of its insolvency, but also of any individuals who were previously directors. Any evidence of misconduct will be taken very seriously.

The Business Secretary also chaired a meeting yesterday (15 January) with leading business and construction trade bodies, representing Carillion’s sub-contractors including representatives from the construction sector:

Also invited were representatives of leading business bodies with the Federation of Small Businesses (FSB), the British Chambers of Commerce (BCC) and the Institute of Directors (IOD) in attendance.

Later today, the Business Secretary will meet the General Secretaries of the TUC and Unite, Frances O’Grady and Len McCluskey, to discuss the impact on employees affected by Carillion’s insolvency.

The department has also outlined the resources open to those workers and businesses affected by Carillion’s liquidation who are seeking further information, including:

Alongside this, the department’s network of 38 Local Growth Hubs, run in conjunction with the Local Enterprise Partnership (LEP), is also on hand to help businesses of all sizes and in all sectors to access support.

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