The Compendium

Receiver (OR) should also make proper use of their powers to requisition accounts and further information where this is likely to provide the details necessary for the purpose of their enquiries. The OR should remind potential examinees of their duty to cooperate where such non-compliance is the reason for the public examination.

If the public examination is an attempt to ensure attendance at an interview, at least three attempts must have been made to arrange an interview and advise the officer, Bankrupt or partner of the need to attend for interview, and the consequences of non-attendance.

The examination is conducted in open court, under oath. The examinee must answer all questions put to them. Other parties, such as creditors, may also ask questions.

If the OR wishes to enforce the cooperation of a company officer (or any other person falling within section 235 Insolvency Act 1986 in relation to that company), but does not intend to question them before the court, she should not apply for the public examination of the person, but should instead apply to the court for an order under the Insolvency Rules (Rule 7.20) requiring that the action be done or information provided, etc.

The OR can request that a Rule 7.20 order have a penal clause inserted. If a company officer fails to comply with such an order the OR can make an application to court that the director be committed for contempt.

When considering whether to apply for the public examination of an officer (or any other person falling within section 235 in relation to that company) or for an order under Rule 7.20, the OR should be aware of the tolerance of their local courts and should use their own judgment to establish the correct method for enforcing cooperation in the circumstances of each case.

See also ‘Private Examination’.

[See ‘Insolvency Practitioner’, ‘Official Receiver’, ‘Bankrupt’, ‘Officer’ and ‘Private Examination’.]