Collapse of Carillion plc: Carillion plc went into liquidation on Monday 15 January 2018. Less than two years earlier its market capitalization exceeded £2 billion, and its net assets exceeded £1 billion in 2015.

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Main Focus

(i) the reasons for the company’s collapse;

(ii) the economic, social and political consequences of its failure;

(iii) any potential grounds of legal liability for Carillion’s directors;

(iv) the adequacy of English insolvency law to deal with complex cases of business failure.




The collapse of Carillion has influenced the British construction industry to the possibility of stagnation. It was characterized by the house building activities falling in January just after the EU referendum. The construction clients have shown hesitance in investments in new projects emanating from the rising concerns over the United Kingdom’s economic outlook as well as uncertainty over Brexit. The policymakers are likely to be influenced by the surprise outcome of the construction staggering on the edge of retrenchment.

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