5 Impact Assessment
20. The Impact Assessment[10]
assesses that the proposal will save an estimated £3,360,000
per year. This is based on a cost of £300 per advertisement.
The figure also assumes that 80% of cases would not require additional
advertising if it were not mandatory under the current provisions.
The figure is "anecdotal"[11].
These provisions of the 1986 Act apply to cases of voluntary insolvency
- the Department states that, as a result, directors may be expected
to co-operate with the insolvency practitioner and to comply with
the statutory requirement to deliver up all of the company's accounts.
They believe that, in most cases, these records should include
a full list of known creditors, leaving relatively few cases where
further advertisement is thought to be necessary. We find this
unconvincing.
10 ED Annex B Back
11
ED Annex B p8 para 29 Back
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