Why Your Current Group Structure Could Be Costing You!

UK groups, particularly acquisitive ones, are finding that they are now faced with complex, unwieldy group structures where the number of dormant or inactive entities in the group greatly exceeds those that are active. Therefore, we are increasingly seeing UK boards addressing corporate simplification as a priority. So why act now?

Fit for purpose?

The Government has recently produced a consultation paper in respect of Insolvency and Corporate Governance, and are seeking views as to whether stronger corporate governance and transparency measures are required in relation to the oversight and control of complex group structures. We wait to hear whether any recommendations are put forward to tighten the existing framework, however it demonstrates an increasing need for groups to consider whether their current structure is fit for purpose.