Q&As

Are there any grounds on which a person or entity can refuse to disclose information to a liquidator? And is the position the same for an individual who was a director of the company in liquidation?

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Published on LexisPSL on 23/02/2016

The following Restructuring & Insolvency Q&A provides comprehensive and up to date legal information covering:

  • Are there any grounds on which a person or entity can refuse to disclose information to a liquidator? And is the position the same for an individual who was a director of the company in liquidation?
  • Position of non-directors
  • Position of directors

Are there any grounds on which a person or entity can refuse to disclose information to a liquidator? And is the position the same for an individual who was a director of the company in liquidation?

STOP PRESS: From 6 April 2017, the Insolvency Rules 1986, SI 1986/1925 were revoked and replaced by the Insolvency (England and Wales) Rules 2016 (IR 2016), SI 2016/1024. The content in this Q&A may have been affected by this change.

This Q&A examines this point specifically in relation to liquidation and will be relevant where a request has been made by a liquidator who has not obtained a court order.

Position of non-directors

The Insolvency Act 1986 (IA 1986) and Insolvency Rules 1986, SI 1986/1925 (IR 1986) give insolvency office-holders in certain situations the power to obtain property, including cash, books and records and documents of the insolvent company or bankrupt (see IA 1986, ss 234 and 236). The IA 1986 also imposes a duty on certain individuals and entities under IA 1986, s 235 to co-operate with the office-holder and imposes sanctions in the event that they fail to do so. That latter section is principally concerned with the company’s officers and former officers, although it also applies to, among others, the company’s employees and ex-employees.

Office-holders therefore have a right to the company’s books and records, save for exceptional circumstances. However,

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