The scandal of the year in the
car finance industry could result in legal action. A report
into the collapse of
MG Rover claims that the involvement of the Phoenix Partnership
needs to be closely examined, in court.
At this stage it is unclear whether civil action can be taken
against the so-called ‘Phoenix Four’ who purchased MG
Rover from
BMW for a tenner at the turn of the millennium. Anger exists
over the personal benefit of the
company .
One expert,
car industry expert Nick Matthews, reportedly commented in
motor finance news: Company law on fiduciary
responsibility is complex and unclear. The inspectors agree that it
is uncertain, particularly in respect of the deal to buy MGR
Capital. What they have said is that the only way to establish for
sure whether laws have been broken is through the
courts.
