I am a director of a business in Australia with a branch of the same name/industry business in the UK. I am domiciled in Australia.Due to financial issues with the uk biz I have just liquidated the UK entity.In doing so I have been requested by the liquidator to provide various info which I am too ill and frankly too disinterested in doing.. they explain a need to report to the 'Insolvency Service Enforcement Directorate' on director’s conduct and then sent me a reminder of my obligations and a request to complete a long boring set of questions for this body. The form is titled as follows.. THE INSOLVENCY ACT AND RULES 1986 COMPANY DIRECTORS’ DISQUALIFICATION ACT 1986 QUESTIONNAIRE FOR DIRECTORS AND COMPANY OFFICERS/EMPLOYEES..My question is this..If I do not comply with their request what action are they likely to take or can take and what are the consequences for me - bearing in mind I am Australia based and have no interest in being a director in uk again.. ie what can this regulartary body do in the circumstances??
Province/Country relating to question : uk/australia
Thanks for your question. To be honest if you ignore it there is probably little consequence. You could be subject of a directors disqualification order but that will not affect you if you are not planning to run a company in the UK. That is not a criminal matter. It is remotely possible that you could be subject of some accusation under the insolvency act of fraud or malfeasance which could give rise to criminal penalties but if all you have done is fail to respond I do not think there is anything they can do. The only time you could be in difficulty is if they got a court order for you to comely and then if you failed they could ask the court to issue an arrest warrant.
Thankyou this is helpful... I did pay myself travel expenses in the course of going to the uk to recover the situation.. i thought this was reasonable but they have described this action as paying a preferred creditor which may be technically true BUT what is the likelyhood of further action and do you think it would come from the liq or the governing body - who has the 'teeth' inclination or funds to pursue??? again remembering i am aust domiciled. i will hit accept next go!
I slightly struggle to see how paying a directors expenses is a preference . I think it is unlikely to be honest the OR will pursue it as it would probably cost too much but I can imagine they will try and have you disqualified. There are not guarantees however. I realise you don't want to waste the time but why not just let them have the info they are requesting and pint out that you felt you were acting in the best interests of the company. Why risk being sued or prosecuted even if the outcome is unenforceable?
30 years in commercial law
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