The Compendium

The OR will respond to notifications from the courts of company Liquidations, as well as Bankruptcies of individuals. They will (at least) administer the initial stages of the process in both types of insolvency but are increasingly active and involved in the complete action and procedure of very bog jobs, a change to the initial role they used to occupy.

An example is the Liquidation of Carillion, a British multinational construction and facilities management services company headquartered in Wolverhampton. Its Liquidation, in 2018, was the largest ever trading Liquidation in the UK at the time and was administered by the OR’s office.

Insolvency Practitioners were previously used to being passed jobs from the OR, by way of a ‘rota’ run by the Insolvency Service, but many fewer jobs are now passed outside the OR’s office.

If no other Liquidator is appointed by the Secretary of State, the OR’s role involves identifying the assets to be sold, arranging for their valuation and sale, and distributing the proceeds equitably among creditors using the statutory hierarchy.

Part of the role as Liquidator is to decide whether to complete any outstanding contracts, and they may decide to consult with the company’s main creditors before making this decision. The OR will also take on an investigative role of insolvent companies and individuals.

The OR is accountable to both the courts and to the Secretary of State for Business, Innovation and Skills, and their role varies depending on the circumstances of each insolvent company facing Liquidation.

[See ‘Liquidation’, ‘Insolvency Service’, ‘DBEIS’, ‘Insolvency Practitioner’, and ‘IP’.]

On File

A document, certificate or paper is said to be ‘filed’ when it is delivered to the proper officer to be kept on file as a matter of record and reference.

This is almost always the case when a person takes a series of papers or documents to the court to register a case or matter. It is said to be ‘on file’.