Current insolvency legislation allows directors of failed companies to be pursued in the courts for recovery of money where there has been negligence, misconduct or misappropriation of assets. However, all too often liquidators cannot pursue actions because of lack of funding.
Under the civil recovery scheme The Insolvency Service and a team of private sector insolvency specialists known as the Forensic Insolvency Recovery Service ("FIRS") work together to take legal action against directors in appropriate cases. The legal action is on a no-win-no-fee basis.
The scheme aims to deter directors from abusing the privilege of limited liability, and to obtain a return to creditors.
IEQ PLC is in talks with FIRS about its service in connection with the company's ongoing litigation:
-- IEQ PLC v. Sir Richard Needham, others, Case No. HC02-C00065
-- IEQ PLC v. John Shaw, others, Case No. HC03-C01527
