12.58 Further information
The official receiver may consider asking the person making the statement of affairs to provide further information in support of the statement of affairs lodged. It is also open to the official receiver at any time to require a company officer, partner or any person as set out in paragraphs 12.24, 12.25 & 12.26, or the bankrupt, to submit further written information amplifying, modifying or explaining any matter contained in the preliminary information questionnaire or any statement of affairs submitted (form SAFI) and he/she may require that information to be verified by a statement of truth [Note 1] [Note 2] [Note 3].
The official receiver can also require accounts to be filed for a company, partnership or the bankrupt to cover a period up to the date of the relevant order and commencing not earlier than three years prior to the presentation of the winding-up or bankruptcy petition or, in the case of companies, from any earlier date to which audited accounts were last prepared [Note 4] [Note 5] [Note 6]. If the official receiver requires accounts in respect of any earlier period he must apply to the court for an order in this respect.
12.60 Requirement free-standing
A requirement to submit accounts is to some extent a separate requirement from that to submit a statement of affairs. For instance, in a winding-up, accounts can be required from a person who was not asked to submit a statement of affairs. Consequently, the official receiver may decide that a statement of affairs would not materially assist his/her inquiries and that he/she has sufficient information about assets and liabilities in the preliminary information questionnaire but that further information or accounts are required in respect of certain aspects of the insolvent’s affairs.
The official receiver can require the submission of accounts of any description, such as deficiency accounts (form SADA - basic forms on which the deficiency account should be prepared, together with a statement of truth and guidance notes), full trading and profit and loss accounts,
receipts and payments or goods accounts (form SARPG - this includes a letter, guidance notes and statement of truth for use where the official receiver requires the bankrupt or company officer to provide more detailed information regarding receipts and payments, or goods purchased and sold).
The amount of information required is entirely at the discretion of the official receiver, although the requirement should be reasonable and should be obtained in order to materially assist the official receiver in his/her enquiries.
In every case the official receiver must obtain a numeric explanation of the insolvent’s deficiency. In most cases the official receiver does not need to consider obtaining a separate deficiency account, as there will be adequate information in the preliminary information questionnaire (PIQB/PIQC) or comprehensive statement of affairs. In cases where a further explanation is required, the official receiver can consider obtaining a deficiency account which forms part of the statement of affairs. It would be more appropriate if the complete document was submitted rather than obtaining a deficiency account to support the information in the preliminary information questionnaire since it is the deficiency on the statement of affairs which should be accounted for. The company officer, partner or the bankrupt should be provided with the relevant form and accompanying guidance notes (form SADA).
12.63 Full trading and profit and loss accounts
In any case where the insolvent was carrying on business, the official receiver can require the submission of accounts to cover the period up to the date of the insolvency order and commencing from a date up to three years prior to the presentation of the petition [Note 7], or in the case of companies from the date of the last audited accounts (which may be an earlier date) [Note 8]. The official receiver can require these accounts to be verified by a statement of truth (form SAFI) [Note 9] [note 9A].
Assistance may be required in preparing such accounts, and further details regarding these matters are contained in Part 6 of this chapter.
12.64 Receipts and payments account
The information obtained in the preliminary information questionnaire may disclose that further details of monies received and payments made for a particular period of time or trading are required. The official receiver may request that a receipts and payments account is submitted for a period of time ending with the date of the insolvency order. The guidance notes detail the information to be included on the relevant form (SARPG) and the account should be verified by a statement of truth (included in form SARPG).
Assistance may be required in preparing such accounts, and further details regarding these matters are contained in Part 6 of this chapter.
The official receiver may request the submission of a goods account which will show the amount of goods in hand or under the insolvent’s control at a certain date and then the details of all goods purchased and sold between that date and the date of the insolvency order. The guidance notes (form SARPG) set out in detail the information which should be included on the relevant form (SARPG) and the account should be verified by a statement of truth.
If it is thought that any account or piece of information supplied as described above is likely to be used for evidential purposes, the official receiver should require it to be verified by a statement of truth. The fact that a document is to be verified in this way might also focus attention on the need for reasonable accuracy in its preparation by the person who is completing it.
The official receiver can require that any of the above mentioned accounts should be verified by a statement of truth and that they must be delivered to the official receiver within 21 days of his/her request or within such longer period as the official receiver allows. The request must always be made in writing which can include the request in electronic form providing that the recipient has consented to electronic communication and has provided an electronic address for delivery. The same criteria should be applied to the date fixed in such cases as in relation to notice requiring a statement of affairs in a winding-up (see paragraph 12.30).
NOTE: Due to the updating and restructuring of the advice and guidance in this part as a result of the modernisation of the Rules, paragraphs 12.68 and 12.69 have been omitted but changes have not been made to the existing paragraph numbering in this chapter.
In a winding up a person who fails to submit accounts, or to provide further information, without reasonable excuse, in support of the statement of affairs, may be guilty of an offence and liable to a fine [Note 10]. These matters may also be considered in relation to the person’s conduct when considering disqualification proceedings.
A bankrupt who, without reasonable excuse, fails to comply with his/her obligations is guilty of a contempt of court and liable to be punished accordingly [Note 11]. In addition the official receiver may consider that the bankrupt’s failure to comply with his obligations should be reported to the court and apply for the running of the automatic discharge period to be suspended [Note 12] [Note 13] (see chapter 22 for further details).
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