Appointment of a Liquidator in a Compulsory Winding Up

On the making of the winding up order a civil servant known as the Official Receiver is immediately appointed liquidator of the company.

The Official Receiver is a government appointed civil servant.

The main duties of the Official Receiver are to :

• Protect and preserve the assets.
• Make enquiries into the company dealings.
• Make a report under the Company Directors Disqualification Act.

Protection and Preservation of Assets

To achieve this duty the Official Receiver, or his agent, will take into his custody and control the various assets of the company.

Enquiries Into Dealings

Initial enquiries into the dealings of the company are made by:

• Forwarding an enquiry booklet to the directors for completion.
• Interviewing the directors in connection with that completed booklet.
• Corresponding with company creditors, VAT office, PAYE office, bankers etc.

Report under the Company Directors Disqualification Act

The Official Receiver has a duty to "report" to the Department of Trade and Industry (DTI, DBERR or whatever its latest acronym)) Directors Disqualification Unit in relation to the "conduct" of each director.

Guidance notes are issued to the Official Receiver by the DTI in relation to matters which should be considered in compiling a conduct report.

The aim of such a report is to be objective and fair.

Next Step

In nearly all cases where there are realisable assets a private insolvency practitioner (IP) will take over the duties of the Official Receiver in relation to the:

• Realisation of assets.
• Agreement of creditors claims.
• Payment of dividends to creditors.

In "small asset" cases the IP appointed is likely to be selected from a rota of IP's.

In larger asset cases the IP is likely to be appointed at a creditors meeting. (or at the nomination of the largest creditor)

If you wish Purnells to be appointed as liquidator in a compulsory liquidation then please contact us or to arrange a FREE INITIAL MEETING