Solicitors involved in insolvency cases could find themselves caught in personal actions as a new scheme to tackle rogue directors is rolled out nationally.

London firms Moon Beever and Davies Arnold Cooper (DAC), together with Northampton-based Howes Percival, have been piloting a multi-disciplinary forensic insolvency recovery service (FIRS) for three years.

The service, which also includes accountants Kingston Smith & Partners, barristers, insolvency practitioners and enquiry agents will now go national, although southern firm Blake Lapthorn Linnell will replace DAC.

Cases are identified by the regional offices of the Insolvency Service, part of the Department of Trade and Industry.

Other firms may join the scheme.

'We will remain involved, and I think insolvency practitioners in other regions may have other teams to work with,' Moon Beever managing partner Frances Coulson said.

'The main criteria for the Official Receiver is a commitment to conditional fee work, knowledge of the area and the ability to work as part of a team.'

The FIRS pilot was launched by the Official Receiver in 2000, supported by the Inland Revenue and Customs & Excise, to pursue cases on a 'no win, no fee' basis where personal actions against negligent directors are possible (see [2000] Gazette, 20 July, 6).

But others involved in the process, such as lawyers, are also potential targets.

'We have certainly acted against insolvency practices,' Ms Coulson said.

'Solicitors, banks - you name it, anybody who's in the market and isn't careful about some of the things that directors get up to.

We look at everybody, but the director is usually the first port of call.'

As an example, Moon Beever secured settlement on behalf of Kingston Smith & Partners as liquidators against one insolvency practitioner for failing to preserve the assets of a company while in office as voluntary liquidator.

Recoveries were also made from the company's directors.

Insolvency partner Graham McPhie said the action showed that any failure to preserve assets can render an office-holder personally accountable for actions or omissions.

Chris Baker