Insolvent Companies (Reports on Conduct of Directors) Rules 1986
| Jurisdiction | UK Non-devolved |
| Citation | SI 1986/611 |
| Year | 1986 |
1986No. 611
COMPANIES
The Insolvent Companies (Reports on Conduct of Directors)
Rules 1986
25thMarch1986
7thApril1986
28thApril1986
The Lord Chancellor, in the exercise of his powers under section 106 of the Insolvency Act 1985 (a), with the concurrence of the Secretary of State, and after consulting the committee existing for that purpose under section 226 of the Insolvency Act 1985, hereby makes the following Rules:--
Citation, Commencement and Interpretation
1.--(1) These Rules may be cited as the Insolvent Companies (Reports on Conduct of Directors) Rules 1986 and shall come into force on 28th April 1986.
(2) In these Rules references to "the Act" are references to the Insolvency Act 1985.
Reports required under section 12(5) of the Act
2.--(1) This Rule applies to any report made to the Secretary of State under section 12(5) of the Act by:--
(a) the liquidator of a company registered in England and Wales which passes a resolution for voluntary winding up on or after 28th April 1986; or
(b) an administrative receiver of a company appointed otherwise than under section 467 of the Companies Act 1985 (b) (power to appoint receivers under the law of Scotland) on or after 28th April 1986.
(2) Such a report shall be made in the Form D1 or Form D2, set out in the Schedule hereto, as the case may be, and in the manner and to the extent provided in the applicable form.
(3) The obligation on the liquidator to make a report as provided in this Rule under section 12(5) of the Act applies only where--
(a) 1985 c. 65.
(b) 1985 c. 6.
(a) it is a creditors' voluntary winding up (there having been no declaration of solvency by the directors under section 577 of the Companies Act 1985) or
(b) the liquidation began as a members' voluntary winding up and at any time thereafter the liquidator--
(i) forms the opinion that the company will not be able to pay its debts in full within the period stated in the directors' declaration under section 577, and(ii) also forms the opinion that, at the time when the company went into liquidation, its assets were insufficient for the payment of its debts and other liabilities and the expenses of the winding up.Interim return by liquidator or administrative receiver
3.--(1) This Rule applies, where Rule 2 applies, to--
(a) the liquidator, in the case of a company in creditors' voluntary winding up, there having been no declaration of solvency by the directors under section 577 of the Companies Act 1985;
(b) the liquidator, in the case of a company in voluntary winding up, if and when he forms the opinion that, at the time when the company went into liquidation, its assets were insufficient for the payment of its debts and other liabilities and the expenses of the winding up; and
(c) the administrative receiver of a company;
and each is here referred to as "the office-holder".
(2) Subject as follows, the office-holder shall, not later than 6 months from the relevant date (defined in paragraph (4) below), furnish to the Secretary of State an interim return with respect to every person who-
(a) was, on the date when the company went into liquidation or (as the case may be) the administrative receiver was appointed, a director or shadow director of the company, or
(b) had been a director or shadow director of the company at any time in the 3 years immediately preceding that date.
(3) The interim return shall be made in the Form D3, D4 or D5 set out in the Schedule hereto, as the case may be, and in the manner and to the extent provided in the applicable form.
(4) For the purposes of this Rule, "the relevant date" means--
(a) in the case specified in paragraph (1)(a), the date of the liquidator's appointment,
(b) in the case specified in paragraph (1)(b), the date on which the liquidator forms the opinion there mentioned, and
(c) in the case of the administrative receiver, the date of his appointment.
(5) An interim return need not be provided under this Rule if the office-holder has, since the relevant date, made reports to the Secretary of State under section 12(5) of the Act with respect to all the persons falling within paragraph (2) and (apart from this paragraph) required to be the subject of an interim return.
(6) If a liquidator or administrative receiver without reasonable excuse fails to comply with this Rule, he is liable to a fine not exceeding £400 and, for continued contravention, to a daily default fine not exceeding £40.
Enforcement of section 12(6)
4.--(1) This Rule applies where under section 12(6) of the Act (power to call on liquidators, former liquidators and others to provide information) the Secretary of State or the official receiver requires a person--
(a) to furnish him with information with respect to a person's conduct as director or shadow director of a company, and
(b) to produce and permit inspection of relevant books, papers and other records.
(2) On the application of the Secretary of State or (as the case may be) the official receiver, the court may make an order directing compliance within such period as may be specified.
(3) The court's order may provide that all costs of and incidental to the application shall be borne by the person to whom the order is directed.
Hailsham of St. Marylebone, C.
Dated 21st March 1986.
I concur,
Michael Howard, |
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Parliamentary Under Secretary of State, |
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Department of Trade and Industry. |
Dated 25th March 1986.
Companies in Voluntary liquidation |
D1 |
Report on Conduct of Directors under Section 12(5) of the Insolvency Act 1985 |
|
Before completing this formread the DTI Guidance Notes |
Official Use |
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Company registered number |
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Name of Company |
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Registered office address |
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Nature of Business |
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Trading Names |
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Principal place of business |
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Date of winding-up |
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Name of liquidator |
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Office holder number |
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Liquidator's address |
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Period covered by report |
From: To: |
1. I am the liquidator of the company and it appears to me that the persons listed in the schedule were either directors or shadow directors of the company andwere the only such directors of the company during the period covered by this report
2. It further appears to me that the conduct of each of the persons in respect of whom I have marked Y in column 5 in the schedule as directors of the company, either considered in relation to this company alone or taken together with his conduct as a director of any other company, makes him unfit to be concerned in the management of a company. Details of his conduct are provided in Part D1 (B) of the report.
Schedule
1 |
2 |
3 |
4 |
5 |
Full name and other known names |
Last known address |
Mark X if shadow Director |
Period as Director From To |
If you have attached supplementary details please mark with a Y |
Liquidator's Signature _________________________
Date _________________________
Remember to attach forms D1 (A) and D1 (8)
Part A |
D1(A) |
Further Details of the Company |
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Name of Company |
3 |
Date of incorporation |
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4 |
Period of trading |
From |
To |
5 |
Estimated distribution(s) (pence in £) to creditors |
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· preferential: |
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· unsecured: |
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6 |
Summary of statement of affairs |
£ |
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Gross assets: |
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Gross liabilities to creditors: |
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Estimated total deficiency as regards creditors: |
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Called-up capital: |
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7 |
Approximate number and value of |
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unsecured creditors distinguishing between |
No. |
£ |
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Trade and expense: |
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Depositor or consumer pre paid: |
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Connected companies: |
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Other: |
8 Details of connected companies with which the company has had any dealings
The above is correct to the best of my knowledge, information and belief
Liquidator's signature
Date
A separate "Part B" is to be completed for each |
|
Director to be reported upon. |
D1(B) |
Part B |
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Name of Company |
|
Fuller Details of the Individual Director Suject to this Report |
9 |
Full name of the Director: |
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10 |
Date of birth: |
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11 |
Occupation, trade or profession: |
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12 |
Position(s) held within Company: |
13 Give details on such additional pages as necessary of the conduct of the director which makes it appear to you that the conditions of section 12(1) are satisfied.
You should have particular regard to schedule 2 of the Act.
14 List the remuneration and other benefits during each of the 3 years to the date of winding-up.
Period ended |
Remuneration received |
Remuneration voted |
Cash Expenses |
Benefits in Kind |
£ |
£ |
£ |
£ |
|
15(a) Other companies of which the Director is or was during the 3 years to the date of your appointment also a Director or shadow director.
Name of Company |
Reg. No. |
Are you also the Liquidator or Administrative Receiver of that Company (Y/N) |
Mark X here if you are to submit a conduct report in respect of the Company or enter date of report if already submitted |
15 (b) Give details of any other companies not listed at Q8 or 15(a) above with which the director may have had an association which you feel may be relevant to the consideration of his conduct.
16 Give brief details of any civil or criminal proceedings in relation to the company taken or likely to be taken against the Director.
17 Are there any other matter(s) which you consider the Secretary of State should take into consideration.
The details given in Part D1 (B) (comprising________pages) are correct to the best of my knowledge, information and belief.
Liquidator's Signature
Date
Report in Conduct of Directors by an Administrative Receiver |
D2 |
under Section 12(5) of the Insolvency Act 1985 |
|
Before completing this formread the DTI Guidance Notes |
Official Use |
||
Company registered number |
||
Name of Company |
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Registered office address |
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Nature of Business |
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Trading Names |
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Principal place of business |
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Date of appointment of |
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Administrative Receiver |
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Name of |
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Administrative Receiver |
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Office holder number |
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Administrative Receiver's |
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address |
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Period covered by report |
From: To: |
1. I am the...
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