Legal attempt to prevent former Carillion board members from assuming senior board positions | Carillion

The UK government launched a legal attempt to ban eight ex Carillion Board members hold senior board positions, nearly three years after the outsourcing business collapsed.

The Insolvency Service, which deals with corporate failures, has said it is seeking to remove managers “in the public interest”, in a move that could bar them from serving as directors of a UK company or in senior management for two to 15 years. Each.

The legal action, launched by the new Business Minister, Coasi-Quarter, Comes within days of three years The anniversary of the company’s collapseWhen it lost more than 3,000 jobs and 450 public sector projects including hospitals, schools and prisons were in crisis.

Names of eight individuals in court proceedings. Former President Philip Green – who was an advisor to David Cameron on corporate liability – is among the defendants, along with former chief executives Richard Howson – who left after six years in office in 2017, months before the company collapsed – and Keith Cochrane, director. The company since 2015 who took over the position in the final months before failing in January 2018.

Two former CFOs and three non-executive directors are also named.

This procedure is followed by a report on the conduct of each principal by the official recipient – the insolvency service portion charged with handling Carillion’s liquidation.

Kwarteng, who took over from Alok Sharma As Minister of Business this week, it is understandable that he decided it was right for the government to take action against individuals for their behavior. Boris Johnson Sharma has been relieved of the business secretary position so that he can work full-time on preparations For the Cop26 climate conference In Glasgow in November.

READ  FTSE 100 hits nine-month high amid hopes about vaccines, stimulus and OPEC - Business Life agreement | Business

Sign up for a Guardian work email

Carillion was one of the UK’s largest outsourcing contractors, working for the government spanning from building roads and railways to running school canteens. Its collapse in £ 7 billion in debt was the UK’s biggest corporate failure in a decade, and has drawn widespread criticism from current and former executives and auditors, as well as the government’s handling of public sector contracts with private firms.

A spokesperson for the Insolvency Service said, “We can confirm that on January 12, 2020, the Secretary of State issued measures to remove the director of the company in the public interest against eight former directors and managers of Carillion.

Leave a Reply

Your email address will not be published. Required fields are marked *