Investigation and asset tracing for office-holders
Produced in partnership with Russell Hill of Squire Patton Boggs LLP and Mark Surguy of Weightmans LLP
Investigation and asset tracing for office-holders

The following Restructuring & Insolvency guidance note Produced in partnership with Russell Hill of Squire Patton Boggs LLP and Mark Surguy of Weightmans LLP provides comprehensive and up to date legal information covering:

  • Investigation and asset tracing for office-holders
  • Investigation and enquiry into a company’s assets
  • Tracing of assets
  • Substitution
  • Practical considerations

Companies can find themselves victims of fraud or the vehicles for fraud perpetrated by management. In the former case, assets belonging to the company are misappropriated. In the latter case the company may have a partly genuine business or no genuine business at all. In both cases insolvency can result. On appointment the liquidator or administrator will want to investigate what has happened, locate company assets and make a recovery for creditors.

Investigation and enquiry into a company’s assets

Once a decision has been made to appoint an insolvency practitioner (IP) to a company, the Insolvency Act 1986 (IA 1986) provides certain powers to enable the appointed office-holder to investigate the dealings of, and thereafter collect in the assets of, a company.

IA 1986, s 236 allows any administrator, administrative receiver, liquidator or provisional liquidator to apply to court for an order to be made against any of the following categories of person requiring them to provide information about the company and/or its dealings and, if necessary, attend a private examination in court:

  1. any officer of the company

  2. any person known or suspected to have in their possession any property of the company

  3. any person supposed to be indebted to the company; or

  4. any person whom the court thinks capable of giving information concerning the promotion, formation, business, dealings, affairs