Q&As

What steps can a liquidator take to gain access to an account where the bank has refused to neither acknowledge their letters nor release the monies in the account to them for the benefit of the creditor?

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Published on LexisPSL on 15/02/2017

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

  • What steps can a liquidator take to gain access to an account where the bank has refused to neither acknowledge their letters nor release the monies in the account to them for the benefit of the creditor?
  • Delivery-up of company property
  • Liquidator’s powers to investigate and secure the company’s property

What steps can a liquidator take to gain access to an account where the bank has refused to neither acknowledge their letters nor release the monies in the account to them for the benefit of the creditor?

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.

Delivery-up of company property

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 (which includes cash, books, records and documents) of the insolvent company or bankrupt. The IA 1986 imposes a duty on certain individuals and entities to co-operate with the office-holder and imposes sanctions in the event that they fail to do so.

With regards to power of a liquidator to recover monies from a bank account, IA 1986, s 234(2) states that ‘where any person has in his possession or control any property, books, papers or records to which the company appears to be entitled, the court may require that person forthwith (or within such period as the court may direct) to pay, deliver, convey, surrender or transfer the property, books, papers or records to the office-holder'. For a clarification of the term

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