The official receiver would not hold a meeting in cases where there are insufficient realisable assets to justify the appointment of an Insolvency Practitioner (IP) as trustee or liquidator by the creditors. However, where it is essential to get an IP into office at a very early stage (e.g. there is an ongoing business) an urgent application to the Secretary of State (SoS) for the appointment of a trustee or liquidator may be made. This is done without holding a meeting of creditors and a notice of the official receiver's decision not to hold a meeting (form NNM) must have been sent to court. For further information on this subject please refer to the Case Help Manual part: Insolvency Practitioners – Appointment by the Secretary of State.
The official receiver must give formal notice to all known creditors and (in companies) contributories and to the court. This is done by sending form NNM (Notice of No Meeting) (ISCIS ‘Docs’ tab). In the majority of cases the official receiver's report to creditors will be sent out with this notice. A proof of debt form may be issued where it is specifically requested by a creditor and where that creditor is unable or unwilling to access the online form through the Insolvency Service internet site at www.bis.gov.uk/insolvency.
Generally, when a bankruptcy order is made the official receiver becomes receiver and manager of the estate. Where the official receiver decides not to summon a meeting of creditors, he/she becomes trustee of the bankrupt's estate upon the date that the form NNM (ISCIS ‘Docs’ tab) is given to the court.
Even though the official receiver becomes liquidator of a company upon the making of a winding-up order at court, he/she is still required to make a decision as to whether or not to hold a meeting. In not holding a meeting, the official receiver is in effect deciding to remain as liquidator.
An ISCIS workflow task (‘Decide whether to appoint an IP for case’) will show up automatically on the workflow list of the case officer assigned to the case, the examiner assigned to the case and any staff assigned to the ‘meetings’ user group of the office concerned. The local office will have procedures in place regarding who is responsible for issuing any notices of no meeting. It is important that only the member of staff responsible for completing this task (or any other workflow task) ’takes’ this task, as once a task has been ‘taken’ and ‘completed’ it will no longer be visible in ISCIS.
Where the case has not yet been transferred to a local court, care must be taken that the notice to the court is not addressed and issued to the High Court unless the official receiver is required to become trustee as a matter of urgency in which case the notice should be sent forthwith. Where this official receiver is not required to become trustee as a matter of urgency the notice may be held back until the local court reference is known.
Where can I find out more?
Insolvency Act 1986:
Section 293 - Duty of official receiver to decide – bankruptcy
Section 136 - Duty of official receiver to decide – liquidation
Case Help Manual:Forms to be used:
NNM - Notice of No Meeting
ISCIS tabs that must be used to record/view information are given in brackets, e.g. (‘Case Header’ tab).