Company bosses who deliberately dissolve their company to avoid paying pension contributions could be hit with disqualification under government plans.
The Department for Business, Energy and Industrial Strategy (BEIS) said directors will face fines or investigations where they shut down companies to dodge paying obligations to creditors or staff, before then launching a nearly-identical company with a new name. The process, known as ‘phoenixing', can see the pension scheme sent into the Pension Protection Fund (PPF), with members facing cuts to their benefits. Many phoenix companies arise out of pre-pack administrations (PPA) and, by April 2017, about 17% of schemes in the PPF had entered after their sponsors had undergone PPAs. Now...
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