so you think the UK housing Market is going well
in that case you better read the new blog
Thursday, March 13, 2008
BBC2 Money Programme Buy to Debt part 3
Britain's deflating buy-to-let bubble. Investors are struggling with rising mortgage costs and weaker house price growth. www.housepricecrash.co.uk
BBC2 Money Programme Buy to Debt part 2
Britain's deflating buy-to-let bubble. Investors are struggling with rising mortgage costs and weaker house price growth. http://www.housepricecrash.co.uk/
BBC2 Money Programme Buy to Debt part 1
Britain's deflating buy-to-let bubble. Investors are struggling with rising mortgage costs and weaker house price growth. www.housepricecrash.co.uk
UK house price crash - quiet before the fall
There is an uncomfortable quiet right now - the quiet before the fall.
More at
Tuesday, March 4, 2008
Disqualified Directors Search
Disqualified Directors Search
can be viewed at http://www.insolvency.gov.uk/doitonline/ddbase.htm
This search facility gives information relating to disqualifications obtained in the last 6 months.
For a more complete register of directors with disqualifications currently in effect, please see the Companies House website.
Once a director has been disqualified they cannot be involved in the promotion, formation or management of a limited company for the period of their disqualification, without the permission of the court. Directors who breach their disqualification can be subject to further proceedings.
For more information see the Guide for Directors to Compulsory Liquidation.
Enforcement HotlineTo report a bankrupt acting in breach of their restriction or a director acting in breach of a disqualification contact us on : 0845 601 3546, email enforcement.hotline@insolvency.gsi.gov.uk or by post at Insolvency Service - Hotline Team, 5th Floor, Ladywood House, 45-46 Stephenson Street, Birmingham, B2 4UZ
The information contained here is regularly updated. However occasional inaccuracies do occur. If you believe the pages contain any errors, please email Directors Search with the error that you have found.
© Crown copyright 2006 copyright notice - Crown copyright material is reproduced with the permission of the Controller of HMSO and the Queen’s Printer for Scotland
Full details can be viewed at http://www.insolvency.gov.uk
can be viewed at http://www.insolvency.gov.uk/doitonline/ddbase.htm
This search facility gives information relating to disqualifications obtained in the last 6 months.
For a more complete register of directors with disqualifications currently in effect, please see the Companies House website.
Once a director has been disqualified they cannot be involved in the promotion, formation or management of a limited company for the period of their disqualification, without the permission of the court. Directors who breach their disqualification can be subject to further proceedings.
For more information see the Guide for Directors to Compulsory Liquidation.
Enforcement HotlineTo report a bankrupt acting in breach of their restriction or a director acting in breach of a disqualification contact us on : 0845 601 3546, email enforcement.hotline@insolvency.gsi.gov.uk or by post at Insolvency Service - Hotline Team, 5th Floor, Ladywood House, 45-46 Stephenson Street, Birmingham, B2 4UZ
The information contained here is regularly updated. However occasional inaccuracies do occur. If you believe the pages contain any errors, please email Directors Search with the error that you have found.
© Crown copyright 2006 copyright notice - Crown copyright material is reproduced with the permission of the Controller of HMSO and the Queen’s Printer for Scotland
Full details can be viewed at http://www.insolvency.gov.uk
Director disqualification and restrictions > I have been disqualified
Director disqualification and restrictions > I have been disqualified
A court has made, or is going to make a disqualification order against you or you have given a disqualification undertaking to the Secretary of State, which has been accepted. These are very serious matters. You could go to prison if you contravene the order or undertaking.
The order or undertaking will be registered at Companies House, which monitors new directorships and provides details of disqualified directors on request.
This publication gives you some idea of what the order or undertaking means. It does not give a complete list of everything you must and must not do, nor does it give you legal advice.
To understand exactly how the order or undertaking affects you, you should always ask your solicitor or an insolvency practitioner.
What am I not allowed to do?
While the order or undertaking is in force, it stops you acting as if you were a director. So you cannot avoid the order or undertaking by simply changing your job description.
The order or undertaking also means that you must not get other people to manage a company under your instructions.
The order or undertaking does not stop you from having a job with a company, but unless you have court permission it does stop you:
being a director of a company;
acting as receiver of a company's property;
being concerned in or taking part in the promotion, formation or management of a company
and you must not act as an insolvency practitioner.
The order or undertaking does not stop you carrying on business as a sole trader or in partnership with others but, unless you have court permission, you must not be a member of or be concerned or take part in the promotion, formation or management of a limited liability partnership.
What does ‘company’ mean?
You must not do any of the prohibited acts listed under the previous heading in relation to a company formed in England and Wales, or in Scotland.
You must not do any of the prohibited acts in relation to a foreign company if:
it is registered here; or
it has a sufficient connection here (for example, if it carries on business or has assets here) even if it is not registered here.
You must not do any of the prohibited acts in relation to a building society or an incorporated friendly society.
You must not hold various other offices, such as the trustee of a charity: always take professional advice first.
What happens if I contravene the order or undertaking?
You are then committing a criminal offence and you could go to prison for up to 2 years and face a fine.
The Insolvency Service operates a 24-hour telephone hotline to enable the public to report breaches of these orders and undertakings.
If you contravene the order or undertaking, you could also become personally liable for any debts of the company which it incurs while you contravene the order or undertaking.
Anybody who actions your instructions may also be personally liable.
If the order has been made against, or the undertaking given by, a corporate director, and that corporation contravenes the order or undertaking, then its officers or managers can be punished as if the order or undertaking applied to them personally.
Can I ask for permission to act in a way prohibited by the order or the undertaking?
You can ask the court for permission to become a director of a company or do anything else that the order or undertaking prevents. However, the court cannot give you permission to act as an insolvency practitioner.
You need to satisfy the court that you have a reasonable need to do what you are asking - not just that you want to do it.
You also have to satisfy the court that, if it gives you the permission you want, the public will be adequately protected. The court may require safeguards and may impose conditions on you.
If you want to ask for permission, you will need to make a formal application to the court.
What is the likely period of disqualification?
The minimum period of disqualification is 2 years and the maximum 15 years.
A disqualification order usually carries with it an order to pay the costs and expenses of the Secretary of State or the Official Receiver or both.
Further Information
For more information on the effect of a disqualification order or undertaking, see our publications page, where you will find 'A guide for directors', 'Company Directors Disqualification Act 1986 & Failed Companies' & 'Company Directors Disqualification Act 1986 and Disqualified Directors'
© Crown copyright 2006 copyright notice - Crown copyright material is reproduced with the permission of the Controller of HMSO and the Queen’s Printer for Scotland
Full details can be viewed at http://www.insolvency.gov.uk
A court has made, or is going to make a disqualification order against you or you have given a disqualification undertaking to the Secretary of State, which has been accepted. These are very serious matters. You could go to prison if you contravene the order or undertaking.
The order or undertaking will be registered at Companies House, which monitors new directorships and provides details of disqualified directors on request.
This publication gives you some idea of what the order or undertaking means. It does not give a complete list of everything you must and must not do, nor does it give you legal advice.
To understand exactly how the order or undertaking affects you, you should always ask your solicitor or an insolvency practitioner.
What am I not allowed to do?
While the order or undertaking is in force, it stops you acting as if you were a director. So you cannot avoid the order or undertaking by simply changing your job description.
The order or undertaking also means that you must not get other people to manage a company under your instructions.
The order or undertaking does not stop you from having a job with a company, but unless you have court permission it does stop you:
being a director of a company;
acting as receiver of a company's property;
being concerned in or taking part in the promotion, formation or management of a company
and you must not act as an insolvency practitioner.
The order or undertaking does not stop you carrying on business as a sole trader or in partnership with others but, unless you have court permission, you must not be a member of or be concerned or take part in the promotion, formation or management of a limited liability partnership.
What does ‘company’ mean?
You must not do any of the prohibited acts listed under the previous heading in relation to a company formed in England and Wales, or in Scotland.
You must not do any of the prohibited acts in relation to a foreign company if:
it is registered here; or
it has a sufficient connection here (for example, if it carries on business or has assets here) even if it is not registered here.
You must not do any of the prohibited acts in relation to a building society or an incorporated friendly society.
You must not hold various other offices, such as the trustee of a charity: always take professional advice first.
What happens if I contravene the order or undertaking?
You are then committing a criminal offence and you could go to prison for up to 2 years and face a fine.
The Insolvency Service operates a 24-hour telephone hotline to enable the public to report breaches of these orders and undertakings.
If you contravene the order or undertaking, you could also become personally liable for any debts of the company which it incurs while you contravene the order or undertaking.
Anybody who actions your instructions may also be personally liable.
If the order has been made against, or the undertaking given by, a corporate director, and that corporation contravenes the order or undertaking, then its officers or managers can be punished as if the order or undertaking applied to them personally.
Can I ask for permission to act in a way prohibited by the order or the undertaking?
You can ask the court for permission to become a director of a company or do anything else that the order or undertaking prevents. However, the court cannot give you permission to act as an insolvency practitioner.
You need to satisfy the court that you have a reasonable need to do what you are asking - not just that you want to do it.
You also have to satisfy the court that, if it gives you the permission you want, the public will be adequately protected. The court may require safeguards and may impose conditions on you.
If you want to ask for permission, you will need to make a formal application to the court.
What is the likely period of disqualification?
The minimum period of disqualification is 2 years and the maximum 15 years.
A disqualification order usually carries with it an order to pay the costs and expenses of the Secretary of State or the Official Receiver or both.
Further Information
For more information on the effect of a disqualification order or undertaking, see our publications page, where you will find 'A guide for directors', 'Company Directors Disqualification Act 1986 & Failed Companies' & 'Company Directors Disqualification Act 1986 and Disqualified Directors'
© Crown copyright 2006 copyright notice - Crown copyright material is reproduced with the permission of the Controller of HMSO and the Queen’s Printer for Scotland
Full details can be viewed at http://www.insolvency.gov.uk
Director disqualification and restrictions > What is director disqualification?
Director disqualification and restrictions > What is director disqualification?
A disqualification order is made by the court under the Company Directors Disqualification Act 1986. The Act applies not only to a person who has been formally appointed as a director but also to those people who have carried out the functions of a director and to shadow directors.
Without specific permission of the court, it disqualifies a person from:
acting as a director of a company
taking part, directly or indirectly, in the promotion, formation or management of a company
being a liquidator or an administrator of a company
being a receiver or manager of a company's property.
An order for disqualification can be made under a number of different sections of the Company Director Disqualification Act 1986 (see also section 4 - Criminal proceedings). The order will specify the period of disqualification. For orders made against an unfit director of an insolvent company, there is a minimum period of 2 years and a maximum of 15 years.
In April 2001 disqualification undertakings were introduced, which are an administrative equivalent of a disqualification order. An undertaking may be given to the Secretary of State which has the same effect as a disqualification order, but do not involve court proceedings.
When can disqualification occur?
When a company has failed, the OR (or IP in a creditors' voluntary liquidation, an administrative receivership or an administration) has to send the Secretary of State a report on the conduct of all directors who were in office in the last 3 years of the company's trading. The Secretary of State has to decide whether it is in the public interest to seek a disqualification order. Any application is heard and decided by the court.
Examples of conduct which may lead to disqualification include:
continuing to trade to the detriment of creditors at a time when the company was insolvent
failure to keep proper accounting records
failure to prepare and file accounts or make returns to Companies House
failure to submit tax returns or pay over to the Crown tax or other money due
failure to co-operate with the OR/IP.
How will I know if a disqualification order is to be sought against me?
Notification of a decision to apply for a disqualification order will be sent to the last address you provided to Companies House or to the OR/IP. The application for disqualification has to be made within 2 years of the date of the winding-up order (or any earlier voluntary liquidation, administrative receivership or administration), unless the court extends the time.
What happens after an application for disqualification is made?
The OR will make a report to the court on the conduct of the directors and send a copy to them. The directors will have the opportunity to give the court explanations or reasons for their actions - but may do so by a statement of truth (a written account of the relevant facts which is sworn on oath or affirmed, usually before a solicitor). There may also be statements of truth from other people (such as the company's bankers, accountants and creditors) presented as evidence to support the case for or against the directors. The court will then decide whether the conduct makes the directors unfit to act in the management of a company and, if so, for how long they should be disqualified.
Disqualification proceedings are taken under civil law, not criminal law.
At any stage in these proceedings you may give an undertaking to the Secretary of State that has the same effect as a disqualification order and will put a stop to the court proceedings.
What is the purpose of the CDDA?
It aims to maintain the integrity of the business environment. Those who become directors of limited companies should:
carry out their duties with responsibility; and
exercise adequate skill and care with proper regard to the interests of the company’s creditors and employees.
The majority of directors do this effectively, but the CDDA is a powerful tool against those who abuse the privilege of limited liability. The CDDA applies not just to persons who are formally appointed as directors but to those who carry out the functions of directors.
When can the courts make disqualification orders under the CDDA?
The court can do this for example, for:
certain criminal offences connected with the Companies Acts legislation;
wrongful trading (such as trading while insolvent;
failure to comply with filing requirements under the Companies Act Legislation;
unfit conduct in insolvent companies.
More than 9,600 disqualification orders have been made because of unfit conduct in failed insolvent companies since 1986, for periods up to the statutory maximum of 15 years.
How do disqualification proceedings begin?
If there is any unfit conduct, then the liquidator, administrative receiver, administrator or Official Receiver has a duty to send the Secretary of State for Business, Enterprise and Regulatory Reform a report on the conduct of all directors who were in office in the last 3 years of the company's trading.
The Secretary of State has to decide whether it is in the public interest to seek a disqualification order against a director.
What type of conduct is reported to the Secretary of State?
Examples of the most commonly reported conduct are:
allowing the company to continue to trade when it was unable to pay its debts;
failure to keep proper accounting records;
failure to prepare and file accounts or make returns to Companies House; and
failure to submit returns or pay the Crown any tax due.
Who brings the proceedings in relation to a failed company?
The proceedings are brought by the Secretary of State for Business, Enterprise and Regulatory Reform or, usually in compulsory winding-up cases, by the Official Receiver at the direction of the Secretary of State. The matter is heard, and decided by the court, unless the Secretary of State accepts a disqualification undertaking from a director.
What is the likely period of disqualification?
The minimum period of disqualification is 2 years and the maximum 15 years.
A disqualification order usually carries with it an order to pay the costs and expenses of the Secretary of State or the Official Receiver or both.
What is the effect of a disqualification order or disqualification undertaking?
Unless he or she has court permission, the person is disqualified for the period stated in the order or undertaking from:
being a director of a company;
acting as receiver of a company's property;
directly or indirectly being concerned or taking part in the promotion, formation or management of a company; or
being a member of or being concerned or taking part in the promotion, formation or management of a limited liability partnership.
He or she is also absolutely disqualified during the disqualification period from acting as an insolvency practitioner.
Further Information
For more information on the effect of a disqualification order or undertaking, see our publications page, where you will find 'A guide for directors', 'CDDA & Failed Companies' & 'CDDA and Disqualified Directors'
© Crown copyright 2006 copyright notice - Crown copyright material is reproduced with the permission of the Controller of HMSO and the Queen’s Printer for Scotland
Full details can be viewed at http://www.insolvency.gov.uk
A disqualification order is made by the court under the Company Directors Disqualification Act 1986. The Act applies not only to a person who has been formally appointed as a director but also to those people who have carried out the functions of a director and to shadow directors.
Without specific permission of the court, it disqualifies a person from:
acting as a director of a company
taking part, directly or indirectly, in the promotion, formation or management of a company
being a liquidator or an administrator of a company
being a receiver or manager of a company's property.
An order for disqualification can be made under a number of different sections of the Company Director Disqualification Act 1986 (see also section 4 - Criminal proceedings). The order will specify the period of disqualification. For orders made against an unfit director of an insolvent company, there is a minimum period of 2 years and a maximum of 15 years.
In April 2001 disqualification undertakings were introduced, which are an administrative equivalent of a disqualification order. An undertaking may be given to the Secretary of State which has the same effect as a disqualification order, but do not involve court proceedings.
When can disqualification occur?
When a company has failed, the OR (or IP in a creditors' voluntary liquidation, an administrative receivership or an administration) has to send the Secretary of State a report on the conduct of all directors who were in office in the last 3 years of the company's trading. The Secretary of State has to decide whether it is in the public interest to seek a disqualification order. Any application is heard and decided by the court.
Examples of conduct which may lead to disqualification include:
continuing to trade to the detriment of creditors at a time when the company was insolvent
failure to keep proper accounting records
failure to prepare and file accounts or make returns to Companies House
failure to submit tax returns or pay over to the Crown tax or other money due
failure to co-operate with the OR/IP.
How will I know if a disqualification order is to be sought against me?
Notification of a decision to apply for a disqualification order will be sent to the last address you provided to Companies House or to the OR/IP. The application for disqualification has to be made within 2 years of the date of the winding-up order (or any earlier voluntary liquidation, administrative receivership or administration), unless the court extends the time.
What happens after an application for disqualification is made?
The OR will make a report to the court on the conduct of the directors and send a copy to them. The directors will have the opportunity to give the court explanations or reasons for their actions - but may do so by a statement of truth (a written account of the relevant facts which is sworn on oath or affirmed, usually before a solicitor). There may also be statements of truth from other people (such as the company's bankers, accountants and creditors) presented as evidence to support the case for or against the directors. The court will then decide whether the conduct makes the directors unfit to act in the management of a company and, if so, for how long they should be disqualified.
Disqualification proceedings are taken under civil law, not criminal law.
At any stage in these proceedings you may give an undertaking to the Secretary of State that has the same effect as a disqualification order and will put a stop to the court proceedings.
What is the purpose of the CDDA?
It aims to maintain the integrity of the business environment. Those who become directors of limited companies should:
carry out their duties with responsibility; and
exercise adequate skill and care with proper regard to the interests of the company’s creditors and employees.
The majority of directors do this effectively, but the CDDA is a powerful tool against those who abuse the privilege of limited liability. The CDDA applies not just to persons who are formally appointed as directors but to those who carry out the functions of directors.
When can the courts make disqualification orders under the CDDA?
The court can do this for example, for:
certain criminal offences connected with the Companies Acts legislation;
wrongful trading (such as trading while insolvent;
failure to comply with filing requirements under the Companies Act Legislation;
unfit conduct in insolvent companies.
More than 9,600 disqualification orders have been made because of unfit conduct in failed insolvent companies since 1986, for periods up to the statutory maximum of 15 years.
How do disqualification proceedings begin?
If there is any unfit conduct, then the liquidator, administrative receiver, administrator or Official Receiver has a duty to send the Secretary of State for Business, Enterprise and Regulatory Reform a report on the conduct of all directors who were in office in the last 3 years of the company's trading.
The Secretary of State has to decide whether it is in the public interest to seek a disqualification order against a director.
What type of conduct is reported to the Secretary of State?
Examples of the most commonly reported conduct are:
allowing the company to continue to trade when it was unable to pay its debts;
failure to keep proper accounting records;
failure to prepare and file accounts or make returns to Companies House; and
failure to submit returns or pay the Crown any tax due.
Who brings the proceedings in relation to a failed company?
The proceedings are brought by the Secretary of State for Business, Enterprise and Regulatory Reform or, usually in compulsory winding-up cases, by the Official Receiver at the direction of the Secretary of State. The matter is heard, and decided by the court, unless the Secretary of State accepts a disqualification undertaking from a director.
What is the likely period of disqualification?
The minimum period of disqualification is 2 years and the maximum 15 years.
A disqualification order usually carries with it an order to pay the costs and expenses of the Secretary of State or the Official Receiver or both.
What is the effect of a disqualification order or disqualification undertaking?
Unless he or she has court permission, the person is disqualified for the period stated in the order or undertaking from:
being a director of a company;
acting as receiver of a company's property;
directly or indirectly being concerned or taking part in the promotion, formation or management of a company; or
being a member of or being concerned or taking part in the promotion, formation or management of a limited liability partnership.
He or she is also absolutely disqualified during the disqualification period from acting as an insolvency practitioner.
Further Information
For more information on the effect of a disqualification order or undertaking, see our publications page, where you will find 'A guide for directors', 'CDDA & Failed Companies' & 'CDDA and Disqualified Directors'
© Crown copyright 2006 copyright notice - Crown copyright material is reproduced with the permission of the Controller of HMSO and the Queen’s Printer for Scotland
Full details can be viewed at http://www.insolvency.gov.uk
Companies Investigation Branch
Companies Investigation Branch
About the Companies Investigation Branch
Companies Investigation Branch (CIB) is part of the regulatory arm of the Department for Business, Enterprise & Regulatory Reform (BERR). Prior to the creation of BERR, it was part of the Department of Trade & Industry.
Although CIB is located within the Insolvency Service, an Executive Agency of BERR, it is not limited to companies that have become insolvent. In fact, most of its investigations are into companies that are actively trading. Please see our “Frequently Asked Questions” for details of what we can and cannot investigate.
In a free market, all those who deal with companies whether as investors, suppliers or consumers should be protected from misconduct or unscrupulous practices.
We all need to feel confident in our dealings with the business community. As investors, creditors and consumers, we need to know our money is secure, and have trust in corporate Britain.
Without this confidence, investment, sales and markets fall. We need to keep promoting confidence.
Not only is confidence enhanced by transparency and accountability, but by an effective and discerning system of regulation. Our approach to this is to take a proportionate and realistic view of issues brought to our attention, and to investigate aspects of corporate behaviour which might harm both the business community and the public generally.
Under the Companies Acts we have the power to investigate companies. When we receive information about the behaviour of particular companies we will assess that information to see whether or not it would be appropriate for us to attend on that company, and ask them to provide us with documents and information. This allows us to come to a view as to whether or not there are grounds for action in the wider public interest and decide what action we should take.
We do not carry out criminal investigations - those are better left to the police - although our investigations may provide the basis for a subsequent criminal enquiry. We cannot intervene in any dispute between individuals and a company, be they creditors, shareholders or the company’s own management - although we may investigate the issues giving rise to the dispute if there is a wider public interest in doing so.
Our investigations are confidential, and that is why we do not tell complainants whether or not we are going to investigate, or, when we do decide to investigate, tell the company’s directors the reasons why we are doing so or who has complained. We also carry out a risk assessment of each case to ensure that those cases with a higher level of risk to the public are given priority.
Other Information
What we do
What we do not do
How we do it
What can happen
The Law
FAQ's
How to complain
Contact Us
Complaint Form
Current Press Releases (from April 2006)
Press Releases
Publishing Scams
Inspectors' Reports
Related Links
© Crown copyright 2006 copyright notice - Crown copyright material is reproduced with the permission of the Controller of HMSO and the Queen’s Printer for Scotland
Full details can be viewed at http://www.insolvency.gov.uk
About the Companies Investigation Branch
Companies Investigation Branch (CIB) is part of the regulatory arm of the Department for Business, Enterprise & Regulatory Reform (BERR). Prior to the creation of BERR, it was part of the Department of Trade & Industry.
Although CIB is located within the Insolvency Service, an Executive Agency of BERR, it is not limited to companies that have become insolvent. In fact, most of its investigations are into companies that are actively trading. Please see our “Frequently Asked Questions” for details of what we can and cannot investigate.
In a free market, all those who deal with companies whether as investors, suppliers or consumers should be protected from misconduct or unscrupulous practices.
We all need to feel confident in our dealings with the business community. As investors, creditors and consumers, we need to know our money is secure, and have trust in corporate Britain.
Without this confidence, investment, sales and markets fall. We need to keep promoting confidence.
Not only is confidence enhanced by transparency and accountability, but by an effective and discerning system of regulation. Our approach to this is to take a proportionate and realistic view of issues brought to our attention, and to investigate aspects of corporate behaviour which might harm both the business community and the public generally.
Under the Companies Acts we have the power to investigate companies. When we receive information about the behaviour of particular companies we will assess that information to see whether or not it would be appropriate for us to attend on that company, and ask them to provide us with documents and information. This allows us to come to a view as to whether or not there are grounds for action in the wider public interest and decide what action we should take.
We do not carry out criminal investigations - those are better left to the police - although our investigations may provide the basis for a subsequent criminal enquiry. We cannot intervene in any dispute between individuals and a company, be they creditors, shareholders or the company’s own management - although we may investigate the issues giving rise to the dispute if there is a wider public interest in doing so.
Our investigations are confidential, and that is why we do not tell complainants whether or not we are going to investigate, or, when we do decide to investigate, tell the company’s directors the reasons why we are doing so or who has complained. We also carry out a risk assessment of each case to ensure that those cases with a higher level of risk to the public are given priority.
Other Information
What we do
What we do not do
How we do it
What can happen
The Law
FAQ's
How to complain
Contact Us
Complaint Form
Current Press Releases (from April 2006)
Press Releases
Publishing Scams
Inspectors' Reports
Related Links
© Crown copyright 2006 copyright notice - Crown copyright material is reproduced with the permission of the Controller of HMSO and the Queen’s Printer for Scotland
Full details can be viewed at http://www.insolvency.gov.uk
Compulsory Liquidation > What is Compulsory Liquidation?
Compulsory Liquidation > What is Compulsory Liquidation?
What types of liquidation are there?
Members' voluntary liquidation (or members' voluntary winding up) - this is when the shareholders of a company decide to put it into liquidation, and there are enough assets to pay all the debts of the company, i.e. the company is solvent.
Creditors' voluntary liquidation (or creditors' voluntary winding up) - this is when the shareholders of a company decide to put the company into liquidation, but there are not enough assets to pay all the creditors, i.e. the company is insolvent.
Compulsory liquidation (or compulsory winding up) - this is when the court makes an order for the company to be wound up (a 'winding-up order') on the petition of an appropriate person. If there is more than one director, all the directors must jointly present the winding-up petition - a single director cannot present a winding-up petition.
If you are a director or a shareholder and you are also a creditor of your company, you may wish to present a winding-up petition on the grounds that the company cannot pay its debts. Please read our publication 'Dealing with debt - How to wind up a company that owes you money' for more information.
Where can I get advice about liquidation?
Before you take any action to put a company into liquidation, you should obtain your own legal or financial advice about this procedure and any other options available to you. You can get advice from your local Citizens Advice Bureau, a solicitor, a qualified accountant, an authorised insolvency practitioner, any reputable financial adviser or a debt advice centre.
What are the alternatives to liquidation?
There are 3 possibilities:
Informal arrangement - the company could consider writing to all its creditors to see if a mutually acceptable agreement can be reached. It is advisable to include a timetable of when payments will be made.
Company voluntary arrangement (CVA) - this is a formal version of the arrangement described above. The directors would need to apply to the court with the help of an authorised insolvency practitioner, who would supervise the arrangement and pay the creditors in line with the accepted proposals.
Administration - this is a court procedure that gives the company some breathing space from any action by creditors. A court can grant an administration order to enable the company to:
survive, in whole or in part, as an ongoing business;
organise a voluntary arrangement or compromise with its creditors;
get a better realisation of assets than would be possible if the company went into liquidation.
The procedure is managed by an administrator, who must be an authorised insolvency practitioner.
Further Information
You can find further information in the publication 'Dealing with Debt - How to wind up my own company'
© Crown copyright 2006 copyright notice - Crown copyright material is reproduced with the permission of the Controller of HMSO and the Queen’s Printer for Scotland
Full details can be viewed at http://www.insolvency.gov.uk
What types of liquidation are there?
Members' voluntary liquidation (or members' voluntary winding up) - this is when the shareholders of a company decide to put it into liquidation, and there are enough assets to pay all the debts of the company, i.e. the company is solvent.
Creditors' voluntary liquidation (or creditors' voluntary winding up) - this is when the shareholders of a company decide to put the company into liquidation, but there are not enough assets to pay all the creditors, i.e. the company is insolvent.
Compulsory liquidation (or compulsory winding up) - this is when the court makes an order for the company to be wound up (a 'winding-up order') on the petition of an appropriate person. If there is more than one director, all the directors must jointly present the winding-up petition - a single director cannot present a winding-up petition.
If you are a director or a shareholder and you are also a creditor of your company, you may wish to present a winding-up petition on the grounds that the company cannot pay its debts. Please read our publication 'Dealing with debt - How to wind up a company that owes you money' for more information.
Where can I get advice about liquidation?
Before you take any action to put a company into liquidation, you should obtain your own legal or financial advice about this procedure and any other options available to you. You can get advice from your local Citizens Advice Bureau, a solicitor, a qualified accountant, an authorised insolvency practitioner, any reputable financial adviser or a debt advice centre.
What are the alternatives to liquidation?
There are 3 possibilities:
Informal arrangement - the company could consider writing to all its creditors to see if a mutually acceptable agreement can be reached. It is advisable to include a timetable of when payments will be made.
Company voluntary arrangement (CVA) - this is a formal version of the arrangement described above. The directors would need to apply to the court with the help of an authorised insolvency practitioner, who would supervise the arrangement and pay the creditors in line with the accepted proposals.
Administration - this is a court procedure that gives the company some breathing space from any action by creditors. A court can grant an administration order to enable the company to:
survive, in whole or in part, as an ongoing business;
organise a voluntary arrangement or compromise with its creditors;
get a better realisation of assets than would be possible if the company went into liquidation.
The procedure is managed by an administrator, who must be an authorised insolvency practitioner.
Further Information
You can find further information in the publication 'Dealing with Debt - How to wind up my own company'
© Crown copyright 2006 copyright notice - Crown copyright material is reproduced with the permission of the Controller of HMSO and the Queen’s Printer for Scotland
Full details can be viewed at http://www.insolvency.gov.uk
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