The Compendium

In another context, if the goods which are apparently unowned are not claimed by a finder, the Government usually automatically becomes the owner.

Dissolution is usually the last step to strike a company off the register. At this stage all of the assets would have been either sold or distributed. Property, cash and any other assets owned by a company when it is dissolved automatically pass to the Crown. This is because the company no longer has a separate legal existence to the shareholders/members, and there is literally no place for the excompany’s assets to go.

Where any assets of the company are inadvertently realised after dissolution the net proceeds should be paid to The Treasury Solicitor or the Duchy Solicitor. The Official Receiver (OR) should provide details of the agent’s charges deducted from the sale proceeds to enable the Solicitor to decide whether or not to challenge these costs. The OR should not charge any fees in relation to these bona vacantia monies.

[See ‘Dissolution’, ‘Treasury Solicitor’ and ‘Official Receiver’.]

Bond

Part 2 of Schedule 2 of the Insolvency Practitioners Regulations 2005 sets out the requirement for all Insolvency Practitioners to bond, or take out professional liability insurance. This is insurance to cover any mistakes that may be made or actions that may be taken against them.

The Insolvency Practitioner must hold:

• A general penalty bond in the amount of £250,000; and
• A specific penalty bond equal to at least the value of the estate in the Liquidation, Administration, etc. as estimated by the officeholder at the date of the appointment, ignoring the value of any assets charged to a third party, or held on trust.

This is subject to a minimum specific penalty bond of £5,000 and a maximum of £5,000,000.

[See ‘Insolvency Practitioner’, Officeholder’, ‘Administrator’, and ‘Liquidator’.]