Evidence gathering and obtaining property

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The Insolvency Act 1986 (IA 1986) and the Insolvency (England and Wales) Rules 2016 (IR 2016), SI 2016/1024 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. 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. In addition, certain individuals or entities are required to deliver up accounts or explanations (either orally, in person or by way of a sworn statement) detailing their dealings with the affairs and property of the insolvent individual or company.

The purpose of the powers is to allow the office-holder to reconstitute the knowledge of the insolvent company or individual, which may allow previously unknown assets to be realised for the benefit of creditors.

Corporate insolvency

Where a company enters into one of the applicable insolvency processes (being, under IA 1986, s 234(1), administration, administrative receivership, liquidation or provisional liquidation), certain persons and entities owe duties to the appointed office-holder to deliver up company

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Latest Restructuring & Insolvency News

Insolvency Service reports finance company shut down after fraud investigation

The Insolvency Service reports that Basic Prime Limited was wound up following an investigation that revealed fraud concerns. The company, which purported to offer trade finance guarantees and credit enhancement services, received US$231,000 (approximately £175,000) from a client in May 2024 for arranging a US$500m financial guarantee. However, it failed to deliver the promised services and ceased communication with the client by September 2024. Basic Prime Limited was never registered as a financial services provider with the Financial Conduct Authority (FCA). The investigation further uncovered that the company had no genuine business presence at its registered address in Croydon, maintained non-operational contact details, and had a director who did not provide the requested information or documents. Despite receiving the client fee and misrepresenting its banking arrangements, the company filed dormant accounts. The Official Receiver has now been appointed as the liquidator of Basic Prime Limited.

Restructuring & Insolvency weekly highlights—27 November 2025

This week's edition of Restructuring & Insolvency weekly highlights includes: Budget announcements of interest to restructuring and insolvency professionals, an examination of fiduciary duty principles in a judgment that involved the disposition of shares by a director after the company entered into liquidation (Mitchell v Al Jaber), a discussion on the appropriateness of an English court granting an administration order for a Jersey-incorporated company with its headquarter in London, plus a round-up of other news and cases for restructuring and insolvency professionals.

Budget 2025—key Restructuring & Insolvency announcements

In the Budget 2025, on 26 November 2025, the Chancellor of the Exchequer, the Rt Hon Rachel Reeves MP announced several measures that will be of interest to restructuring and insolvency professionals. The measures include changes to business rates, recruitment of additional Insolvency Service staff to tackle abusive phoenixism and rogue directors, establishment of the Public Authorities Fraud Investigation and Enforcement Service, and reforms to National Insurance Contributions.

Supreme Court holds that a director who unlawfully transfers company assets after liquidation is liable for breach of fiduciary duty and must compensate the company for resulting loss (Mitchell and another (Joint Liquidators of MBI International & Partners Inc (In Liquidation)) v Sheikh Mohamed Bin Issa Al Jaber)

The Supreme Court has unanimously held that Sheikh Mohamed Bin Issa Al Jaber was in breach of his fiduciary duties when he effected the 2016 transfer of 891,761 shares from MBI International & Partners Inc to JJW Guernsey after the company had entered liquidation. Rejecting arguments that the company suffered no loss due to unpaid vendor’s liens, the Supreme Court ruled that the shares were not subject to such liens and that the loss should be assessed at their value at the date of the breach. Restoring the trial judge’s approach, the Supreme Court reinstated the order for equitable compensation of €67,123,403.36, emphasising that fiduciaries cannot rely on later events to escape liability without clear proof of causation.

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