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Dear Sirs
Please could you forward me as a requirement of new Money Laundering legislation a certified copy of either your passport or current driving license together with a copy of a current utility bill in your name at your current address. By signing this letter, that constitutes your consent to my processing your data electronically to verifying your identity. Please do not sign the letter if you do not agree to the same.
As it is apparent that the Company is insolvent because it is either unable to pay its debts when they fall due or alternatively, it has been agreed that immediate steps be taken to place the company into liquidation. In the period up to the holding of meetings of the Company’s shareholders and voting on a decision procedure by its creditors, you as director, remain responsible for the conduct of its affairs. This is your responsibility. This is issued to you in your capacity as Director of the Company, not in any other capacity.
You have an express duty to act so as to preserve the assets of the Company and minimise its liabilities in the interests of creditors and members generally.
Please can you provide me with full details of all assets of the Company that are available for me to realise for creditors. You should take care to avoid any action, which will result in any creditors or members being preferred or in any other way put at an advantage over the rest. Your general statutory duties also remain in force and you should ensure that the Company continues to comply with all necessary regulations.
It is particularly important that the matters set out below are strictly observed:
- A statutory meeting of members must be convened and these and the decision procedure must be presented to the Company’s creditors and a statement of affairs and list of creditors must be prepared so that it may be presented to creditors ahead of voting at the selected decision procedures. Where a decision procedure is a virtual meeting / physical meeting, it is mandatory the convener / chairman of the meeting must attend.
- Part of the process involves a Decision Procedure in which information has to be supplied to creditors. Additional requirements in respect of that procedure are set out in Statement of Insolvency Practice Number 6 which should be viewed at the following link https://www.icaew.com/-/media/corporate/files/technical/insolvency/regulations-and-standards/sips/england/sip-6-e–w-010118-icaew.ashx .
- Further credit must not be taken. Please note that trading on by acceptance of further credit can give rise to personal liability for a Director. It can be considered to be Wrongful Trading which is explained at the following website page https://www.oliverelliot.co.uk/recover-a-debt/insolvency-litigation/wrongful-trading/.
- Deliveries of goods ordered prior to the date of this letter should not be accepted.
- Assets at the Company’s premises (or elsewhere) at risk of being seized by any creditor, including but not limited to any landlord, should wherever possible be moved to a place where they are safeguarded.
- Nothing should be done by which any of the Company’s creditors or any surety or guarantor of the company’s debts or liabilities will be put into a better position than he would have had that thing not been done. In particular, no further payments should be made from the Company funds to any creditor.
- Any bank account(s) previously operated by the Company should not be used nor should any further payments or receipts be allowed to pass through the account(s). You should immediately inform the bank(s) of your intention to place the company into liquidation and ask them to freeze all bank account(s) and ensure that all direct debits and standing orders are cancelled.
- All necessary steps should be taken to preserve and protect the assets of the Company for the benefit of the creditors and, in particular, no assets should be disposed of without my prior knowledge.
- In the event there is any money held in a company bank account in circumstances where there are amounts owed to the bank in loans and overdrafts in other accounts with the same bank, then you should safeguard the Company’s interest in such credit balances.
- All monies received by the Company should be forwarded to the Liquidation bank account on the appointment of the Liquidator.
- All outstanding debtors should be notified forthwith that no payments should be made directly into the company’s bank account and that all payments should be made in cheque form forwarded to this office.
- Please confirm whether the Company made use of laptops and mobile devices that will have personal data therein and notify us immediately of any special categories of personal data for the purposes of GDPR.
- The personal data on any laptops and mobile devices will need to be handed over to the Liquidator and then securely wiped subsequently.
- The Company’s books and records however they are kept, electronic and or hard copy need to be delivered up to us at the commencement of the Liquidation and the bank statements are needed now from the date of the last accounts to date. You should export and or extract all applicable data from any online accounting system, to preserve and safeguard all electronic records immediately.
- You should forthwith notify all employees forthwith that from the point of termination of their employment contract, to ensure their ability to claim statutory redundancy is safeguarded, they will need to lodge a claim with the Employment Tribunal within 6 months of such termination.
- You should issue the enclosed Redundancy Guidance “Employee FAQs” sheet to all employees and anyone who has been an employee who could have employment rights claims against the Company to ensure they are made aware of their rights. If you are unsure if an employee has such rights due to the circumstances of their leaving the Company, then you should issue the enclosed document to them in any event.
- If there are 20 or more employees who will be made redundant from one establishment, complete Form HR1 and forward to Department for Business & Trade (DBT) and any recognised trade unions immediately on appointment and before any dismissal. Email to (HR1@insolvency.gov.uk) From September 2025 this can be submitted electronically. Paper based form will not be accepted after 1.12.25. https://www.gov.uk/government/publications/redundancy-payments-form-hr1-advance-notification-of-redundancies 30 days notice is required (90 days if 100 + employees). A recent case confirmed insolvency is not a special circumstance to allow exemption from the consultation period. case reference. Further information and guidance is available at Redundancy payments: Form HR1 – advance notification of redundancies – GOV.UK (gov.uk). Failure to consult may result in a Penalty Award of up to 90 days gross pay (preferential).
- If you were an employee of the Company you that is owed arrears of wages, holiday pay, redundancy or other unpaid contractual entitlements you can make a claim under the government’s redundancy payment service. If this applies to you then please ask us for further details if you wish to submit a claim.
- When calculating any claim you wish to lodge against the Company you should take into account any money that you owe to the Company, any expenses you have incurred personally on behalf of the Company and any entitlements you claim from the Company.
Failure to comply with the above may result in penalties or personal liability being incurred under the provisions of the Insolvency Act 1986, the Company Directors’ Disqualification Act 1986 and associated legislation. I would therefore ask you to sign, date and return the enclosed copy of this letter to verify that you have read and understood its contents.
Please also give your attention to the link about the information necessary for the completion of the Statement of Affairs which can be viewed at https://www.oliverelliot.co.uk/insolvency-guides-and-information/what-information-is-needed-for-the-statement-of-affairs/ and other information that is required from you detailed here https://www.oliverelliot.co.uk/insolvency-guides-and-information/how-to-start-a-liquidation/
By signing this letter you acknowledge you have read the links to these web pages referred, understood the same.
Yours faithfully
Elliot Green
Director
Licensed by the Institute of Chartered Accountants in England & Wales
(Insolvency Practitioner Number 9260)
EMPLOYEE FAQs
| I have been made redundant – how do I make a claim? | You will need a case reference number to make your claim, this is provided by the Redundancy Payments Service (“RPS”), a government department via an employee factsheet. This factsheet is attached to this FAQ.
This factsheet from the RPS details how to make statutory claims from the RPS for arrears of pay, holiday pay, redundancy pay, and notice pay (all or some of which, you may be entitled to). Your claim, known as an RP1 has to be made on-line.
What can I claim for on my RP1? (a) Arrears of pay (b) Holiday pay (c) Redundancy Pay You can claim statutory notice pay when your statutory notice period comes to an end. |
| I am owed outstanding salary. Will I receive my arrears of salary? | If your role has become redundant, you can claim for your arrears of pay. This includes salary for work done, overtime, contractual commission and contractual bonus payments. You may be owed money for any wages that you have not yet received up to and including the date of the insolvency of the Company.
If you are owed arrears of pay, tax and national insurance at the basic rate, currently 20%, will be deducted from this payment by the RPS. This claim is subject to a weekly limit of the lower of your pay or £700. |
| Will I receive holiday pay? | Any employee who is made redundant (or has resigned) will be entitled to make a claim to the RPS for outstanding holiday pay which has accrued but not been taken.
This claim is also restricted to the weekly limit of £700 and is subject to tax and national insurance.
Please note that you are not entitled to a full year’s holiday entitlement, but holiday claims are restricted to what has accrued in the portion of the holiday year you have been employed.
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| Will I receive redundancy pay? | To qualify for statutory redundancy pay you must have had at least two years’ continuous service with the Company.
Payment of statutory redundancy pay is based on three factors:
§ How long the employee has been employed; § The employee’s age at the date of redundancy; and § The employee’s weekly gross pay – up to a weekly maximum of £700. The number of weeks you are entitled to can be calculated at the following website: www.gov.uk/calculate-your-redundancy-pay
You must make this claim within 6 months of the date of your redundancy.
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| Will I receive my notice payment? | You can claim notice pay if the Company has failed to give you the minimum statutory notice.
Your statutory entitlements are:
§ 1 weeks’ notice if you are employed for 1 calendar month or more but less than 2 years; § 1 week for each year of employment if you were employed for 2 years or more but less than 12 years; and § 12 weeks if you were employed for 12 years or more. The RPS will invite you by email to complete an online form (known as an RP2) for your notice pay. You will not receive this email until after the end of your statutory notice period. You do not need to do anything now; this email will be sent to you automatically if you have submitted an RP1 and ticked the box when making your application that you wish to claim compensation for loss of notice.
The maximum amount paid by the RPS is £700 per week (gross) and is subject to tax and national insurance. As part of your claim for notice pay, you must claim all benefits to which you are entitled. You should register with DWP to be advised as to which benefits you be able to claim.
Any earnings from a new job in your notice pay period will be deducted from your notice pay claim.
If you remain unemployed, benefits claimed during your notice period will be deducted from your claim. If you do not claim for any benefits to which you are entitled, your claim for notice pay may be reduced by the benefits you could have claimed.
If you have a contract of employment that provides for a notice period that is greater than the statutory payments, you will rank as an unsecured creditor of the Company for this amount.
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| I am on sick leave – what do I do?
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If your role is now redundant, your sick pay will no longer be paid by the Company. You will need to make contact with the DWP to understand how you can claim benefits in relation to your sick leave.
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| If I am on maternity leave or due to go on maternity leave, will I be paid my maternity pay? | If your role is now redundant, you will need to claim any outstanding statutory maternity pay from HM Revenue & Customs (“HMRC”). You will need to contact HMRC on 0300 056 0630 to discuss your individual position.
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If >20 employees, notify the relevant Regional JobCentre Plus Rapid Response Unit where the business operates as soon as possible upon appointment. Contact details for the National Employer Service Team, Northwest England, Southern England & London & Home Counties are below:
National Employer Service Team – Bev Morris (on 0121-626-3261 or via bev.morris1@dwp.gsi.gov.uk)
Northwest England – Vicky Jeffers (on 07855-319663 or via vicky.jeffers@dwp.gsi.gov.uk)
Southern England – Jennie Murphy (on 01823-349153 or via jennie.murphy@dwp.gsi.gov.uk)
London & Home Counties – Yianna Pagoni or Gerald Ahern (on 020-7342-3104 or yianna.pagoni@jobcentreplus.gsi.gov.uk or Gerald.ahern@dwp.gsi.gov.uk)
Oliver Elliot handled the closure of my company, under MVL when I retired last year. This was done smoothly and efficiently to the complete satisfaction of all concerned. I found Oliver Elliot to be approachable and helpful and very patient in answering my questions & queries.
Director – Pauline Stoffberg
Oliver Elliot came recommended and was able to provide me with a clear understanding of how the liquidation process works. Oliver Elliot’s skills and experience were quickly apparent providing me reassurance matters would be safe in their hands. All steps of the process were dealt with swiftly and professionally and they were able to draw upon years of experience and contacts to ensure the process was completed as soon as possible and within the agreed fees.
Director – Ben Luget
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