The Enterprise Act received Royal Assent on 7 November 2002. At that time the Secretary of State for Trade and Industry, Patricia Hewitt, said "The Enterprise Act is good news for business, consumers and the economy. It will give those entrepreneurs who have failed honestly a second chance and help ensure that companies in difficulty do not go under unnecessarily. These measures will help promote an enterprise culture and drive up productivity. We will continue to work closely with stakeholders to ensure that the measures are implemented as effectively as possible."
The corporate insolvency provisions contained in the Act will change insolvency law by providing for a new regime for company administration and restricting the future use of administrative receivership and abolishing the Crown’s preferential creditor status. These measures are expected to come into effect in the early part of the 2003/04 financial year.
