LETTERS
Feeding on the corpses
Sir: Michael Lewis's article (`The revenge of the wimps', 20 April) is long overdue. As a lapsed chartered accountant (I have been a publisher for the last 20 years, living proof that there is life after death) I write with a little knowledge of this subject. Receivers, by virtue of relatively `soft' legislation, and liquidators to a marginally lesser extent, have been allowed to become the carrion crows of crippled firms and companies. Some of the excesses of the Eighties have just come to light, but a minimal investigation of this 'industry' would reveal much interesting activity be- neath the stones; needless to say, much of this would be to the detriment of hapless unsecured creditors.
I am not a natural ally of state-run anything, but why the state hands the mortal remains of business to a fee-seeking cartel is beyond me. I should add that where there is absolutely no sign of finan- cial life the private sector graciously leaves it to the state to bear the cost of the burial.
It takes a vast amount of dedication, risk and skill to create most enterprises, but it does not require expensive surgeons to perform their terminal operations. These functions should be performed by the state (which in any event carries out most of the non-profitable functions relating to the monitoring of companies), however imper- fect that may be. Creditors whose own businesses are often threatened by the collapse of a debtor would certainly be no worse off.
Allen Levy
3 Stanley Gardens, London W11
Previous page
