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LATEST NEWS & EVENTS Corporate insolvency pre-pack reform 'must go further'  Changes to the corporate insolvency regime recently unveiled by the government do not go far enough, it has been claimed. The Recruitment and Employment Confederation (REC) believes that a new crackdown on abuses of pre-pack arrangements will not stop "determined" offenders. Announced by Edward Davey, the minister with responsibility for the insolvency regime, the measures are designed to curb the so-called practice of phoenixism, where assets are sold back to the current management of the firm. REC chief executive Kevin Green noted that phoenixism has been flagged by the organisation's members as a concern for the industry. "Unscrupulous directors emerge unscathed and repeatedly re-start their business while creditors and workers are not paid and this creates unfair competition for legitimate providers," he explained. "This cannot be right and must not be allowed to continue." To combat this, the REC wants to see an automatic referral process to HM Revenue and Customs for directors involved in a second pre-pack. In addition, the REC is looking at ways to preclude directors using more than one pre-pack arrangement from joining the organsisation, Mr Green said. Posted by Paul Stevens 
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