Q&As

Can an office-holder assign their powers under sections 234–236 of the Insolvency Act 1986?

read titleRead full title
Published on LexisPSL on 16/10/2019

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

  • Can an office-holder assign their powers under sections 234–236 of the Insolvency Act 1986?

Can an office-holder assign their powers under sections 234–236 of the Insolvency Act 1986?

For information on the office-holder’s powers of investigation and evidence gathering, see Practice Notes: Basic principles—the delivery-up of information and property to the insolvency office-holder and Evidence gathering—the preservation of information by an insolvency office-holder.

Section 246ZD of the Insolvency Act 1986 (IA 1986) was introduced by the Small Business Enterprise and Employment Act 2015 in October 2015. It introduced the power to assign to third parties certain rights of action that previously could only be pursued by an office-holder. By treating such claims as assets in the insolvency estate that could be sold, it was intended this would facilitate recoveries where the office-holder was unable to personally pursue the claim, for example due to lack of funding. By contrast, IA 1986, ss 234–236 are expressed as powers available to the office-holder and there is no statutory power to assign their wide powers under these sections. This would be logical from a policy perspective, as the courts are careful to ensure IA 1986, ss 235–236

Related documents:

Popular documents