As well as supporting those in financial distress, the Insolvency Service exists to investigate wrongdoing in insolvent companies and to ensure creditors receive maximum returns. It examines both companies that are trading and those that have entered into insolvency proceedings and looks at the behaviour of companies and directors.
While the Service’s investigatory powers are civil and not criminal, a suspected criminal case may be referred to the Criminal Investigation Team or other regulatory or investigative authority with a view to bringing criminal charges.

Legal advice and representation during insolvency

At Taylor Law we have an in-depth understanding of corporate law and insolvency procedures and can help you manage an investigation by the Insolvency Service into your company’s affairs and your conduct as a director.
Our team are familiar with the processes used by the Insolvency Service and will work with you to provide the right documentary evidence in support of your defence. Our advice is honest and pragmatic and we will focus on reaching the best possible outcome for you and your business.
We regularly have dealings with Insolvency Service investigators and can provide assistance and cooperation in an attempt to show that any suspicions are without foundation. If a case is brought against you, we understand how to mount a robust defence and highlight any weakness in the evidence.

Matters investigated by the Insolvency Service

Once an administrator or liquidator has been appointed in an insolvency situation, they will make a report to the Insolvency Service in respect of the conduct of the company’s directors.
In the event that they raise concerns, you may be subject to an investigation. Areas of wrongdoing could include the following:

• Acting as a company director while disqualified
• Fraudulent trading
• Fraudulent business practices
• Failure to keep property company accounting records
• Conduct that is intended to defraud
• Failing to provide company members with information about the business
• Reusing a company name following insolvency
• Failure to disclose property to an Official Receiver

We have experience of defending clients across the full range of these allegations.

Dealing with an insolvency investigation

Our regulatory team will step in to advise you as soon as you are advised of an investigation and will liaise with the Insolvency Service to provide information and answer questions.
You may be interviewed under caution and we will attend with you to ensure that your rights are protected. We can work with you beforehand to prepare you and to make sure that you fully understand the situation and the points of your defence.
We will put forward the strongest possible case for the investigation to be dropped. In the event that the Insolvency Service reach a finding of wrongdoing, they have a number of options as follows:
 Disqualification from acting as a director for up to 15 years.
 Winding up of the company
 Issuing an official warning
 Referring the case for possible criminal proceedings
Where serious wrongdoing has occurred, for example, acting as a director while disqualified, a court can impose a prison sentence and hold someone personally liable for any losses that have occurred.

Contact us

At Taylor Law we have an excellent track record of success in working with clients who are being investigated by the Insolvency Service.
We have expert civil and criminal defence solicitors in Leeds, Middlesbrough and London who can step in immediately to represent you and deal with investigators and police on your behalf.
For an initial discussion, ring us on 0113 532 8100 (Leeds), 01642 221 108 (Middlesbrough) or 0203 780 7646 (London) or fill in our Contact Form.