Roles, powers, duties and functions of an insolvency office-holder

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General

While only a licensed insolvency practitioner (IP) can advise on and undertake appointments in all formal insolvency procedures, the official receiver (OR) does not need to be a licensed IP and neither do certain receivers/managers.

Anyone who wishes to practise as an IP needs to pass examination papers set by the Joint Insolvency Examination Board or have an equivalent qualification from another accounting regulatory body. Once the exams have been passed, it is necessary to meet the authorising body's insolvency experience requirements. IPs are subject to oversight and inspection by their recognised professional body (RPB).

For further reading on the ability of persons to act as IPs and court sanction of IPs in public interest cases, see Practice Note: Insolvency practitioners and their qualification.

With the exception of voluntary liquidators, IPs will also be acting as officers of the court, whether appointed by the court or otherwise, and therefore must comply with the duty applicable to officers of the court set out in Re Condon Ex p James (1874) L.R. 9 Ch App 609 to act honourably and fairly.

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Latest Restructuring & Insolvency News

Insolvency Service reports six-year director ban for £1.5m asset undervaluation

The Insolvency Service has reported the disqualification of the former director of Aldridge Construction Engineering Ltd, Kulbarg Singh, for six years after £1.5m worth of company assets were sold for just over £465,000 in April 2021 to Ace Earth Solutions Ltd, a separate company also under his control. The sale included seven historic cars valued at £101,500, which were sold for £1. The disqualification undertaking, accepted by the Secretary of State for Business and Trade, commenced on 24 July 2025. It prohibits Singh from being involved in the promotion, formation or management of a company without the permission of the court and bans him from directing any company until 2031.

Top court hands banks partial win over motor finance fees

Law360, London: Car finance providers won a partial victory in a landmark case over commission payments on 1 August 2025 when the UK Supreme Court ruled that they did not owe a duty to provide customers with information about the fees, potentially avoiding a multibillion-pound compensation scheme.

Companies House announces mandatory ID verification timeline starting November 2025

Companies House has announced that mandatory identity verification requirements under the Economic Crime and Corporate Transparency Act 2023 will commence from 18 November 2025. New directors must verify their identity for incorporation or appointment, while existing directors need to verify at their next confirmation statement. People with significant control (PSCs) must verify within a 12-month transition period. The requirements affect 6-7m individuals who must complete verification by November 2026. Companies House will implement verification through GOV.UK One Login or Authorised Corporate Service Providers, with acting as an unverified director becoming an offence once requirements commence.

Fraudulent Trading regarding wrongly-obtained Coronavirus support schemes (Bourne v Tunaru)

Restructuring & Insolvency analysis: The court held that a director of a company who had applied for two government-backed Bounce Back Loans for the maximum sum on each occasion, and far in excess of what was permitted with regard to the company’s turnover, was guilty of fraudulent trading, extending the circumstances in which the court will make such a finding. Further, the court held that sums which had been paid from the company’s account to a third party letting agent (which was the landlord under a lease agreement) for the lease on the director’s personal residential property ought to be repaid by the letting agent, notwithstanding that the letting agent had given consideration by letting the property. The court noted in particular that this was proper where the letting agent had notice that the paying party was the company rather than the director. Written by Bertie Beor-Roberts, barrister at Enterprise Chambers.

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