It is an understandable reaction to recent high profile corporate failures, such as BHS and Carillion that politicians and consumers are questioning the adequacy of UK laws designed to hold directors to account for their conduct while in office.

But it would be a mistake to conclude that significant legal reform is required and it would have unintended consequences if directors of a parent company were to be held responsible for the ultimate collapse of a distressed subsidiary for up to two years (indeed, any period) after that subsidiary had been sold.