Further reports to creditors and contributories

March 2005 


In certain circumstances (usually non-surrender cases) the official receiver can only send out a first report to creditors which does not contain much information about the reason for the insolvency. The official receiver should send a further report to creditors when material new information is received. Additionally, where an investigation has resulted in a successful conclusion of prosecution proceedings, or an application for a disqualification order or bankruptcy restrictions order, the official receiver should report this success to the creditors.

18.20 Director/bankrupt surrenders to the proceedings

Where at the time the report is drafted little information is known, the official receiver must send a further report to the creditors following, for example, the surrender of the director/bankrupt to the proceedings. Generally, the official receiver should send a further report to creditors in any case where material new information comes to light at a later date. If the official receiver is liquidator/trustee he/she will minimise the likelihood of creditor queries and complaints or objections when he/she applies for his/her release if creditors are informed of significant developments in the case.

18.21 Further report following a prosecution, disqualification or bankruptcy restrictions order

Where the official receiver's investigation ultimately results in a successful conclusion to prosecution proceedings, or a disqualification order or a bankruptcy restrictions order being made, the official receiver must issue a further report, which should be of a purely factual nature, to notify creditors of the outcome [note 1]. Please note that it is not advocated that convictions should be reported to creditors where they relate to the following:

  1. Sections 11 and 13 of the Company Directors Disqualification Act 1986 concerning "live" companies;

  2. Section 216 of the Insolvency Act 1986 concerning "live" companies;

  3. Section 360 (credit offences) of the Insolvency Act 1986 (as the offence arises post bankruptcy);

  4. Post insolvency order "assisting Police", not specifically concerning the liquidated company/bankrupt; or

  5. Pre-insolvency order Theft Act matters with a single creditor complainant.

Creditors should not be notified where Warning Letters are issued as these do not constitute a criminal record and are issued in confidence.

After every successful conclusion to prosecution proceedings, a press release is prepared by Legal Services which is sent to Enforcement Directorate, who then pass it to the Government News Network who arrange for it to be sent to local media. When a disqualification order or bankruptcy restrictions order is obtained a press notice template must be completed by the official receiver and submitted to Enforcement Directorate, who will arrange for the success to be passed to local media.


[Back to Part 1 - First report to creditors and contributories]