Why am I being investigated?

WithinWhen three months of a company enteringenters formal insolvency proceedings, the office-holder (for example, an administrator or liquidator) must submit a director conduct report to the Insolvency Service within 3 months.

The Insolvency Service, acting on behalf of the Secretary of StateState, forreviews Businessthis information and Trade.decides Basedwhether onit thisis report,in the Insolvencypublic Serviceinterest decidesto whetherinvestigate itfurther to see if director disqualification may be appropriate.

If misconduct is found, you may be disqualified from acting as a company director from 2 up to 15 years.

During a period of disqualification, you cannot act as a director or be involved in the publicpromotion, interestformation toor investigatemanagement further.of a company without the court’s permission.

If you breach the disqualification, you may face criminal proceedings and could be held personally liable for company debts.

It is important that you co-operatecooperate with the office-holder and provide themaccurate, with
up-to-date contact details.details throughout the insolvency process.

WhatConduct happensthat next?may be investigated

IfThe ancriteria investigationfor being disqualified as a director is commenced,extensive.

This youincludes, willbut receiveis anot letterlimited fromto:

• conduct that seeks to deprive creditors of assets
• neglecting the company’s tax affairs
• failing to follow the rules
• fraudulent trading
• not acting in the best interests of your company and/or its creditors

What happens next?

If the Insolvency Service.Service Itdecides to open a civil investigation, we will askwrite forto commentsyou onsetting out the initial areas of investigation.concern and invite you to provide your comments.

It is in your best interests to respond. If you do not, the Insolvency Service can only rely on information available from other sources,sources when making their decision. Any evidenceevidence, and explanations or information you provide will be important when making this decision.

TheDuring the investigation the Insolvency Service may contact you again asto theask casefurther progresses,questions toor askrequest youmore furtherinformation. questions. You can also providesubmit further information to the Insolvency Service with more information at any stage of the process.

Investigation outcomes

• If no further action is required, the case will be closed, and you will be informed.

• If the investigation recommends disqualification,disqualification or compensation, you will receive a summary of the alleged misconduct and next steps to take. You will again be invited to provide any further information you think should be considered.

Secretary

The ofInsolvency StateService decision

Ifmay aalso disqualificationpass recommendationinformation remainsto appropriate,another thiscriminal willor becivil reviewedlaw byenforcement anorganisation independentwith teampowers withinmore theappropriate Insolvencyto Servicedeal actingwith for the Secretaryconcerns of State.

TheyThere willmay decidealso ifbe thereother isconsequences.

You sufficientcan evidencefind andfurther whetherinformation itabout isthe insolvent incompany theinvestigations publicprocess and director interest to commence disqualification proceedings..

BeforeGo proceedingsback areto commenced, you will receive a detailed letter from the Insolvencydirector Services’information Legalhub Services Directorate outlining:homepage.

• the

  Help fullus allegation

• the potential disqualification period (2 to 15improve years)
• if a compensation order is being sought
• the availabledirector evidence and how to request copies
• your available options

You can find further information abouthub theby completing insolventa companyshort investigationsfeedback processsurvey. and director disqualification.