Work being carried out

Question

Can a company that has previously gone bankrupt and started up again,work for the parish council, bearing in mind one of the directors is a parish councillor.

Answer 1

In theory Yes, but there would be a perceived conflict of interest. If the Parish Councillor is still the subject of a bankruptcy restrictions order or interim order he/she cannot stand for re election  The decision would be a matter for the whole Council, not just the Director/Parish Councillor.  The PC should have a procurement Policy - do they have one?.

Comments

If the member was a director, it is likely that the company was limited, so without delving into the minefield of company law, there is probably no personal liability on the individual.

Answer 2

Taking each element individually, "Can a company that has previously gone bankrupt and started up again, work for the parish council?" Yes, although if it is a major contract, members should be mindful of the company's history (but other companies tendering for the work may have a similar history that you do not know about).  "Can a company work for the parish council, bearing in mind one of the directors is a parish councillor?"  Yes, but the member concerned may not participate in the process of appointment, which must follow the rules set out in the council's standing orders and financial regulations regarding code of conduct, competitive quotes, tendering procedures etc.