A parliamentary inquiry is set to be held into the demise of Bury Football Club.
Damian Collins, chair of the Digital, Culture, Media and Sport (DCMS) Committee, described the EFL's decision to expel the Shakers last week as a 'tragedy'.
Mr Collins said the decision to end the club's 125-year membership, which was taken after a late takeover bid collapsed, also marked 'a failure of football governance' and was reflective of 'a wider and growing problem within the Football League'.
He also added his voice to calls for the EFL to reinstate Bury into Sky Bet League Two for the 2020/21 season.
Mr Collins said: "The decision by the English Football League (EFL) to expel Bury Football Club is a tragedy for all who follow the team as well as the wider community that it serves.
"It also marks a failure of football governance. The current owners and directors test is clearly not sufficient to protect the long-term interests of clubs and keep bad owners and directors out of the game.
"The football authorities need greater powers to intervene earlier when clubs get into financial difficulties, and certainly long before they get to the edge of the abyss.
"I would ask that even at this late stage that the EFL considers any realistic proposal that could support Bury's status as a Football League club, including whether they could play next season in League 2, under new ownership."