Insolvency Service Wind-up Financial Services Firm in the Public Interest
August 23 2013
Winding-up Petitions brought by the Insolvency Service
Company Investigations, part of the Insolvency Service, uses powers under the Companies Act 1985 to conduct confidential fact-finding investigations into the activities of live limited companies in the UK on behalf of the Secretary of State for Business, Innovation & Skills (BIS).
Winding-up in the Public Interest
Why the Insolvency Service Wound-up the Company
- The company was controlled by an individual not named as a current director at Companies House and who regularly used an alias.
- The directors and shareholders failed to co-operate and actively hindered the investigation.
- The company failed to maintain or preserve adequate trading records.
- The company filed false or unverifiable accounts at Companies House.
- Over £1m was taken from the company’s account after the investigation started without proper explanation.
Commenting on the case, Alex Deane, an Investigation Supervisor with the Insolvency Service, said:
“This company targeted individuals, many of whom were already in financial difficulties, and promised loans which it failed to deliver. This is unacceptable and the winding up orders should serve as a warning that the Insolvency Service will close down companies that operate in this way.”
The Insolvency Service administers the insolvency regime investigating all compulsory liquidations and individual insolvencies (bankruptcies) through the Official Receiver to establish why they became insolvent. The agency also authorises and regulates the insolvency profession; deals with disqualification of directors in corporate failures; assesses and pays statutory entitlement to redundancy payments when an employer cannot or will not pay employees; provides banking and investment services for bankruptcy and liquidation estate funds; and advises ministers and other government departments on insolvency law and practice.
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