Can criminal proceedings arise from Insolvency procedures for Directors?
The ‘OR’ is required to report any evidence of possible criminal offences by Directors that they uncover while investigating a company’s affairs to The Insolvency Service’s Corporate and Business Services. A decision is then taken on whether the matter should be referred to the Business, Enterprise and Regulatory Reform’s Solicitors (Prosecutions) or other prosecuting authority to consider proceedings. Examples of possible offences are: • Companies Act 1985 – failure to keep proper accounting records or fraudulent trading. • Insolvency Act 1986 – concealing assets or material omissions from a statement of affairs. • Company Directors Disqualification Act 1986 – a Disqualified person or Bankrupt acting or taking part in the management of a company. • Theft Acts – misappropriating a company’s funds or assets for a Director’s personal benefit. • The court may also make a disqualification order on the conviction of a Director for a criminal offence in connection with the management of a co
