We use our knowledge and skills to assist Insolvency Practitioners and law firms with insolvency investigations.
We believe that it is essential to act fast at the onset of appointment of the liquidator to ensure all evidence is secured. We assist the liquidator with gaining access to the books and records of the company including the company’s electronic records such as emails, server files and backups of accounting software.
Where a company is faced with an inability to meet its financial obligations or has an excess of liabilities over assets, directors are faced with difficult decisions that must be reached in a timely manner.
There are basic legal requirements that an Insolvency Practitioner must discharge which include:
- Determining the reasons for the demise of the company
- Investigating the conduct of the directors (including those acting as shadow directors)
- Establishing what were the Company’s assets and what happened to them
- Identifying who the company’s creditors are and the quantum of their claims
Company directors are subject to significant legal obligations. In the event that the company enters an insolvency process the directors’ decision-making process will be critically assessed by the Insolvency Practitioner.
IPC Investigations assists the Insolvency Practitioner with fulfilling their legal requirements and can assist with determining the answers to the following questions:
- When was the actual point of insolvency reached by the company?
- What assets did the company have and where are they now?
- Did any transactions take place at undervalue?
- Were any transactions preferential in nature?
- When should the directors have realised that the company was insolvent?
- Were the directors’ actions commercially reasonable under the circumstances?
Our investigations review the transactions undertaken by a company in the period leading up to the date of appointment of the Insolvency Practitioner. We provide a detailed report, providing evidence where relevant, in order to assist both Insolvency Practitioners as well as their respective legal advisers in deciding whether to bring action in relation to the preferential treatment of creditors, transactions at an undervalue, wrongful or fraudulent trading.
The Investigation Process
Our involvement often begins before the Insolvency Practitioner is appointed. We liaise with the Liquidators and directors prior to the date of appointment with a view to uplifting the company’s books and records on the date of appointment. Such records will include the company’s accounting records, server files and folders and email backups. The availability of the company’s books and records has a significant impact on the outcome of our investigations. The earlier we are involved the better the outcome, delays can reduce the chances of securing vital evidence therefore lengthening and increasing the cost of investigations.
During the course of our investigations, we may use a light touch approach to review the records for a specific issue or a full investigation of the company’s books and records where appropriate. For example, we may be requested to only determine amounts due from the directors on any overdrawn loan accounts.
Once our investigations are complete our clients receive a detailed, written report from us containing where relevant supporting documents. Our report will also make recommendations for further work where relevant.
During the course of our investigations, we will assist in identifying and quantifying claims in the liquidation. Such claims will then be reported to the Insolvency Practitioner and upon instruction from the Insolvency Practitioner we begin dialogue with the relevant party/parties to progress collection of said monies.