 | This article has multiple issues. Please helpimprove it or discuss these issues on thetalk page.(Learn how and when to remove these messages) (Learn how and when to remove this message)
|
An officer of theInsolvency Service of the United Kingdom, anofficial receiver (OR) is an officer of the court to which they are attached. The OR is answerable to the courts for carrying out the courts' orders and for fulfilling their duties under law. They also act on directions, instructions and guidance from the service's Inspector General or, less often, from theSecretary of State for Business and Trade.
An OR has the following responsibilities:
The bankrupt or the company directors must give the OR information about their own or the company's affairs. The OR will interview them, examine their financial records, and make background enquiries of others who have had dealings with them (e.g. banks, accountants etc.). In every case, the OR reports to creditors and shareholders giving details of assets and liabilities.
Depending on the nature and monetary value of the assets, the OR may arrange a meeting of the creditors (and of contributories in a winding-up) to consider appointing an IP to act as trustee or liquidator in his place. Alternatively, the OR may consult the creditors and ask the Secretary of State to appoint an IP. (This is usually done when such an appointment needs to be made quickly – for instance, when there are large amounts of perishable goods).
If an IP is appointed, the OR will hand over administration. Otherwise, the OR acts as trustee or liquidator to sell the assets, distribute the proceeds to creditors, and complete the administration of the estate (mostly achieved within 12 months of the insolvency order). Whether or not the OR continues as trustee or liquidator, they remain responsible for investigating the insolvent's affairs.
The office of official receiver was established by theBankruptcy Act 1883 (46 & 47 Vict. c. 52). Their role was originally confined topersonal bankruptcy, but it was extended to companies incompulsory liquidation by theCompanies (Winding Up) Act 1890 (53 & 54 Vict. c. 63).[1]
