Skip to main content

Overview Of The Difficulties of Section 236 Of The Insolvency Act 1986

Difficulties of Section 236 of the Insolvency Act 1986 arise because it is not some panacea to cure all of a Liquidator’s information deficiencies.

Its application in practice is capable of being misunderstood. Those who have made extensive use of the provision will know its deployment in a contested application is no simple matter.

It can be useful but there are many instances in which it has shortcomings. It is a power to apply for information; it is not a power of the right to receive.

Evidence Of Difficulties Of Deployment Of Section 236 Of The Insolvency Act 1986

The notable difficulties of Section 236 applications can be seen in cases such as:

Green v BDO Stoy Hayward LLP [2005] EWHC 2413 (Ch)

Green v Chubb and Jervis [2015] EWHC 221 (Ch)

Practical Difficulties Of Using Section 236

What you will find is that Directors who hand over some records can make a Section 236 application an uphill struggle for a Liquidator. Whereas a Director who hands over none (or almost no records) will often not have a leg to stand on.

However, insolvency investigation applications like those under Section 236 of the Insolvency Act 1986 may suffer from the notable disadvantage of all too often being desirable in respect of companies that have no assets. That causes funding problems for a Section 236 application which may mean it cannot be easily or readily deployed.

Are you a UK company Director?

If you are a Director of an insolvent company or a bankruptcy, Oliver Elliot can help you. We Know Insolvency Inside Out.

We Know Insolvency Inside Out
Contact us for help

Share This Page!

What Next?

Expert Advice Is Just A Click Away

If you have any questions in relation to Difficulties Of Section 236 of the Insolvency Act 1986 then contact us as soon as possible for advice. Oliver Elliot offers a fresh approach to insolvency and the liquidation of a company by offering specialist advice and services across a wide range of insolvency procedures.

Our expertise is at your fingertips.

Please enable JavaScript in your browser to complete this form.
Name

By submitting this form you agree with the storage and handling of your data by Oliver Elliot. For more details, please read our Privacy Policy.

Opt in

Disclaimer: Difficulties Of Section 236 of the Insolvency Act 1986

This page is not legal advice and should not be relied upon as such. This article is provided for information purposes only. You can contact us on the specific facts of your case to obtain relevant advice via a Free Initial Consultation.

Recent Posts / View All Posts

Failure To Keep Company Records Does Not Shield A Director From The Liquidators’ Claims

Failure To Keep Company Records Does Not Shield A Director From The Liquidators’ Claims Or Keep Out ‘Prying Eyes’

| Company Records, Liquidation | No Comments
In the case of Thiel-Czerwinke & Anor v Crabb (Courtside Recycling Ltd, Re) EWHC 337 (Ch) the Liquidators showed that a failure to keep company records does not shield a…
Why Do We Liquidate Companies?

Why Do We Liquidate Companies?

| Liquidation | No Comments
Why do we liquidate companies? We liquidate companies so they can be closed down in a fair and organised way that minimises the risk of disputes arising. So long as…
Appointing An Insolvency Practitioner And The Perception Of Independence

Appointing An Insolvency Practitioner And The Perception Of Independence

| Liquidation | No Comments
Appointing an Insolvency Practitioner and the perception of independence cropped up as an issue last week when a creditor of a company that had gone into Administration asked if we…
Cessation of tax clearance in a Members Voluntary Liquidation

Cessation Of Tax Clearance In A Members Voluntary Liquidation

| Liquidation | No Comments
HMRC Tax Clearance In A Members Voluntary Liquidation Overview On 6 December 2023 cessation of tax clearance in a Members Voluntary Liquidation was set out in HMRC's Insolvency Guidance paper…