The Insolvency Service is a government agency that, in their words, “helps to deliver economic confidence by supporting those in financial distress, tackling financial wrongdoing and maximising returns to creditors”.
“The Insolvency Service have powers to investigate both into the affairs of trading companies and companies that have entered into insolvency proceedings and their directors.
The Insolvency Service carry out these investigations on behalf of the Secretary of State.
Following a company entering into a formal insolvency situation, the office-holder carrying out that insolvency procedure may pass on information to the Insolvency Service relating to the conduct of a director.
The Insolvency Service will examine the events leading up to the insolvency to see if there was any misconduct on the part of the directors.
They have the power to:
This includes where the director has conducted the company:
The Insolvency Service may apply to the court to have the company wound up and / or for one of more directors to be disqualified under Company Directors Disqualification Act 1986.
If the Insolvency Service’s investigations reveal that criminal offences may have been committed in the conduct of the company, the case might be referred to their Criminal Investigation Team or the police
It is imperative to act quickly once you are being investigated by the Insolvency Service, or fear such investigation is imminent, so as to choose the best course of action.
If you need advice, please get in touch with Farleys Solicitors’ insolvency experts on 0333 331 4224Request A Call Back