Question to the Department for Business, Innovation, Science and Trade:

To ask the Secretary of State for Business, Innovation, Science and Trade, what assessment he has made of the adequacy of requirements for disclosure of related-party transactions and intercompany balances to allow purchasers and other unsecured creditors to understand how funds were moved within a property development group before insolvency.

The Companies Act 2006 sets out legal requirements in respect of related-party transactions. These include the rights and duties of the company directors and shadow directors within Part 10, disclosure obligations in Part 15 and financial assistance rules in Part 17.

Where a company enters insolvency, the insolvency framework provides mechanisms to investigate the company’s affairs and transactions before insolvency, including transactions involving connected parties. These protections sit alongside company reporting and disclosure requirements.