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Once the report has been submitted the information provided in it will be subject to analysis by a ‘Rules Engine’. This Rules Engine will carry out an initial sift of cases to identify those where there are sufficient indications of possible misconduct to require review by a member of staff from the Insolvent Targeting Team.
It is at this stage, if necessary, that further information will be requested from the officeholder’s firm to assist with deciding whether to target the case for further investigation.
[See ‘Compulsory Liquidation’, Insolvency Practitioner’, ‘Joint Officeholders’, ‘CDDA 1986’ and ‘Insolvency Service’.]
The Director of Public Prosecutions (DPP) is the office or official charged with the prosecution of criminal offences in several criminal jurisdictions around the world. The title is used mainly in jurisdictions that are, or have been, members of the Commonwealth of Nations. This, of course, includes the United Kingdom.
The DPP is involved in some aspects of insolvency law; for example, under sections 218-219 Insolvency Act 1986 the office can be involved in the criminal prosecution of ‘delinquent directors’.
[See ‘Criminal Offence’, ‘Directors’ and ‘Insolvency Act’.]
A shareholder/member of a limited liability company will have ‘limited liability’. This is, their liability (either on a ‘call’ or at the time of the Liquidation of the company) is limited to the unpaid part of any shares they hold.
A director, on the other hand, does not have limited liability if they act negligently (where they knew or ought to have known there was no reasonable possibility of avoiding insolvent Liquidation – wrongful trading) or wrongly/delinquently.
In this circumstance, the director can be liable to make a personal contribution, without limit, to the estate of the insolvent company.
