If you are a creditor of an insolvent company or a bankruptcy, Oliver Elliot can help you address your concerns arising from the insolvency and section 208 of the insolvency act 1986 can help.
Section 208 of the Insolvency Act 1986 is about a failure by a Director or Officer to properly assist in a winding up when obligated to do so.
Section 208 of the Insolvency Act 1986 is the Section that addresses misconduct by a Director or Officer in the course of winding up.
(1)When a company is being wound up, whether by the court or voluntarily, any person, being a past or present officer of the company, commits an offence if he—
(a)does not to the best of his knowledge and belief fully and truly discover to the liquidator all the company’s property, and how and to whom and for what consideration and when the company disposed of any part of that property (except such part as has been disposed of in the ordinary way of the company’s business), or
(b)does not deliver up to the liquidator (or as he directs) all such part of the company’s property as is in his custody or under his control, and which he is required by law to deliver up, or
(c)does not deliver up to the liquidator (or as he directs) all books and papers in his custody or under his control belonging to the company and which he is required by law to deliver up, or
(d)knowing or believing that a false debt has been proved by any person in the winding up, fails to inform the liquidator as soon as practicable, or
(e)after the commencement of the winding up, prevents the production of any book or paper affecting or relating to the company’s property or affairs.
(2)Such a person commits an offence if after the commencement of the winding up he attempts to account for any part of the company’s property by fictitious losses or expenses; and he is deemed to have committed that offence if he has so attempted in connection with any qualifying decision procedure or deemed consent procedure of the company’s creditors within the 12 months immediately preceding the commencement of the winding up.
(3)For purposes of this section, “officer” includes a shadow director.
(4)It is a defence—
(a)for a person charged under paragraph (a), (b) or (c) of subsection (1) to prove that he had no intent to defraud, and
(b)for a person charged under paragraph (e) of that subsection to prove that he had no intent to conceal the state of affairs of the company or to defeat the law.
(5)A person guilty of an offence under this section is liable to imprisonment or a fine, or both.
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Disclaimer: Section 208 of the Insolvency Act 1986 – Misconduct In Course Of Winding Up
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