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A statement of truth is a statement made by a party to the legal proceedings that he/she believes the facts stated in the document are true.
Such statements have replaced affidavits in a number of insolvency and restructuring processes.
An example is the statement of truth that accompanies the petition when serving it with the court at the outset of a Bankruptcy.
[See ‘Bankruptcy’.]
Statements of Insolvency Practice are widely known as ‘SIPs’ in the insolvency and restructuring profession. SIPs are commissioned by the Joint Insolvency Committee (JIC), which is made up of representatives from each of the bodies responsible for the authorisation and regulation of Insolvency Practitioners.
These are the Insolvency Service, on behalf of the Secretary of State for Business, Energy and Industrial Strategy (DBIES), the Insolvency Practitioners Association (IPA), the Institute of Chartered Accountants of England and Wales (ICAEW), the Institute of Chartered Accountants in Scotland (ICAS) and the Institute of Chartered Accountants in Ireland (ICAI).
The purpose of SIPs is to promote and maintain high standards by setting out required practice and harmonising the approach of Insolvency Practitioners to particular aspects of insolvency practice; for example, how to act ethically (SIP 1), what to do when investigating the directors of an insolvent company (SIP 2), what the rules are when setting out the basis for and requesting more remuneration (SIP 9).
SIPs set principles and key compliance standards with which Insolvency Practitioners are required to comply. They apply in parallel to the prevailing statutory framework and are often known as ‘best practice guidelines’.
[See ‘Joint Insolvency Committee’, ‘JIC’, ‘Department of Business, Energy and Industrial Strategy’, ‘DBIES’, ‘Insolvency Practitioners Association’, ‘IPA’, ‘Institute of Chartered Accountants of England and Wales’ and ‘ICAEW’.]
