JIEB Personal Insolvency Paper: November 2022

Posted on Apr 06, 2022. by NTI

JIEB Personal Insolvency Paper: November 2022:

"You are an authorised insolvency practitioner working for a firm just outside Grantham. Your colleague approached you first thing this morning (16 November) with a case she has been passed by her colleague who is interviewing for a lecturer's role at BPP, and who is yet to realise that this involves sitting in front of a screen meeting absolutely no-one face-to-face for months on end.

The client, Helena Marston, has expressed concern that her former Bankruptcy (declared under her maiden name of Epplestone) in September 2014 might affect her application for the online estate agent, Purplebricks ("the Company").  Ms Marston has applied for the role of chief executive of the Company who have a policy of getting board appointments vetted by its nominated adviser, Zeus, in line with their listing on the Aim junior stock exchange.

The online estate agent announced that Helena Marston was unable to take charge as chief executive on Monday as planned because due diligence checks are not yet complete.

Ms Marston is concerned that her Bankruptcy, which was discharged in September 2015, will also be revealed to investors in a stock market notice.

Your partner has told you that before " ...any individual can be appointed to the board of an Aim listed company, the nominated advisor will need to complete their director due diligence. As part of this process the individual will need to submit, answer and disclose a Director's Questionnaire. Any adverse findings, unexplained gaps in their history or other red flags, have to be challenged as part of the judgement process before appointing the individual.”


(i)   Advise your client as to whether her Bankruptcy will affect her taking on a £200,000 a year role.
                                                                                                                                                                             (10 marks)

In another matter, a second client has asked to meet you urgently about his Bankruptcy Restriction Order. Mr B Becker of Battersea is concerned about where he might have left his trophies and the key to his (secret and alarmingly undisclosed) mansion in Surrey ..."

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