Crackdown on cruel bosses
Can you C the Red Arrows? Shake-up after BHS storm
FLYING in formation is as easy as A, B, C when you are in the Red Arrows.
It was a grey day for the display, which kickstarted the Sidmouth Regatta in Devon this weekend.
But the RAF team turned the sky red, white and blue. CALLOUS bosses who dissolve companies to avoid paying wages or pensions are to be disqualified from running businesses again.
They will also face hefty fines in a new Government move following the uproar over the collapse of British Home Stores.
The chain of 163 shops was sold by tycoon Sir Philip Green for £1 in 2015 despite a deficit in the staff pension fund of £570million. BHS collapsed in 2016.
Under the crackdown to be unveiled this autumn, directors will face investigation if they dodge debts by dissolving companies – then start up a near-identical businesses with a new name.
The shady practice is known as “phoenixing”. Business Minister Kelly Tolhurst said: “Some recent large-scale business failures show that a minority of directors are recklessly profiting from dissolved companies.
“This can’t continue. We will give new powers to authorities to investigate and hold directors responsible.”
There will also be a ban on rewarding investors when companies are in trouble. If dividends are paid, bosses will have to explain to shareholders how the firm can afford it. Sir Philip, 66, paid out £414million over four years from British Home Stores, most of it to himself and his family. Firms going down the pan will also be allowed more rescue time to ensure suppliers and workers still get paid.