Frank Simms, who started FA Simms & Partners in 1978, has been appointed president for 2009/10.

Upon his appointment he welcomed the proposed government consultation into insolvency practices in the UK, and said he was particularly interested in the assisted funding that could be offered to companies that are struggling financially.

He said: "Funding in these cases is vital if practitioners are to have the breathing space to trade and sell businesses.

"The absence of funding is one of the factors driving up the number of pre-packs and, while we support the pre-pack process, this will help to give practitioners other options."

The government has begun to take a closer look at pre-pack deals and the insolvency practice as a whole, following widespread critcism of deals that go through before any creditors are aware of the situation.

As well as the budget statement, a report into the Insolvency Service was published earlier this month, calling for more priority for unsecured creditors in a pre-pack deal. A further government report is expected out later this year.

Simms added: "This is a critical time for insolvency practitioners. They have a central role to play in rescuing ailing companies and resolving individuals’ debt problems.

"We must do everything we can to equip them with the necessary legislative tools – not just to make the job of administration or voluntary arrangement more effective, but to build public confidence in these and other processes."