In a previous article posted to this website entitled ‘Company Insolvency | Insolvency Practitioner’ we explained the nature of the investigations which will be conducted by an insolvency practitioner (‘the liquidator’) upon the liquidation of a company.

If any irregular activity is discovered by the liquidator, criminal proceedings may be pursued against one or more of the company’s directors or person(s) considered to be in control of the company.

Tim Thompson of Kangs Solicitors outlines some of the various offences which may lead to prosecution.

Our award-winning team of solicitors is nationally recognised for its work in Insolvency, Regulatory and Criminal investigations.

Our team of specialist criminal and civil lawyers is led by Hamraj Kang, a nationally recognised leader in the field of criminal investigations of every nature, including those of a corporate nature.

We are here to assist and our team can be contacted for confidential and discrete advice as follows:

Insolvency Act Offences | Kangs Criminal Insolvency Solicitors

The Insolvency Act 1986 affects directors both past and present and includes:                                    ,

Section 206: Fraud in anticipation of winding up 

This offence covers those who within twelve months immediately preceding the commencement of the winding up proceedings have:

  • concealed any part of the company’s property to the value of £500 or more, or concealed any debt due to or from the company, or
  • fraudulently removed any part of the company’s property to the value of £500 or more, or
  • concealed, destroyed, mutilated or falsified any book or paper affecting or relating to the company’s property or affairs, or
  • made any false entry in any book or paper affecting or relating to the company’s property or affairs, or
  • fraudulently parted with, altered or made any omission in any document affecting or relating to the company’s property or affairs, or
  • pawned, pledged or disposed of any property of the company which has been obtained on credit and has not been paid for (unless the pawning, pledging or disposal was in the ordinary way of the company’s business).

Section 207: Transactions in fraud of creditors

Thissectioncatches those who have:

  • made or caused to be made any gift or transfer of, or charge on, or has caused or connived at the levying of any execution against, the company’s property, or
  • concealed or removed any part of the company’s property since, or within 2 months before, the date of any unsatisfied judgment or order for the payment of money obtained against the company.

Section 208: Misconduct in course of winding up

An offence is committed by those who:

  • do not to the best of their knowledge and belief fully and truly discover to the liquidator all the company’s property, and how and to whom and for what consideration and when the company disposed of any part of that property (except such part as has been disposed of in the ordinary way of the company’s business), or
  • do not deliver up to the liquidator (or as he directs) all such part of the company’s property as is in their custody or control, and which they are required by law to deliver up, or
  • do not deliver up to the liquidator (or as he directs) all books and papers in their custody or control belonging to the company and which they are required by law to deliver up, or
  • knowing or believing that a false debt has been proved by any person in the winding up, fails to inform the liquidator as soon as practicable, or
  • after the commencement of the winding up, prevents the production of any book or paper affecting or relating to the company’s property or affairs.

Section 209: Falsification of company’s books  

This offence is committed where:

  • An officer or contributory of the company commits an offence if they destroy, alter or falsify any books, papers or securities, or makes or is privy to the making of any false or fraudulent entry in any register, book of account or document belonging to the company with intent to defraud or deceive any person.

Section 210: Material omissions from statement relating to company’s affairs

This offence is committed where:

  • any party makes any material omission in any statement relating to the company’s affairs during and prior to its winding up.

Section 211 False representations to creditors 

An offence is committed by those who:

  • make any false representations or any other fraud for the purpose of obtaining the consent of the company’s creditors or any of them to an agreement with reference to the company’s affairs to the winding up.

How Can We Help You? | Kangs Civil Insolvency Solicitors

Kangs Solicitors fields a team of lawyers offering a wealth of experience in all manner of insolvency situations and, by way of example frequently advise: 

Who Can I Contact For Help? | Kangs Financial Crime Solicitors

Hamraj Kang leads an award-winning team of lawyers nationally recognised for its excellence and expertise in Insolvency Service investigations and Serious Fraud Defence.

We welcome enquiries by telephone or email.

We provide an initial no obligation consultation from our offices in London, Birmingham and Manchester.

Alternatively, we provide initial consultations by telephone or video conferencing.

Contact:

Hamraj Kang
hkang@kangssolicitors.co.uk
07976 258171 | 020 7936 6396 | 0121 449 9888

Mr Stuart Southall
ssouthall@kangssolicitors.co.uk
0121 449 9888 | 020 7936 6396

Tim Thompson
tthompson@kangssolicitors.co.uk
020 7936 6396 0121 449 9888

John Veale
jveale@kangssolicitors.co.uk
0161 817 5020  | 020 7936 6396 | 07989 521 210