Liquidator compliance information for creditors anticipated to be applicable in any liquidation:
• On appointment, set the case up on an insolvency database and maintain and separately record all financial records on the case, including the recording of creditors and employees;
• Notify creditors of my appointment;
• In the case of a Compulsory Liquidation provide to the Official Receiver an undertaking to pay out of the first realisations of assets, both the balance currently appearing in their account and those monies, including fees, guarantees and advances paid by the Official Receiver, becoming due in future and payable under Insolvency Act 1986 and the IR 2016;
• Obtain a Specific Penalty bond for a sum equal to the company’s assets subject to the statutory provisions. This bond covers any losses to the estate for any possible fraud or dishonesty of the Liquidator whether acting alone or in collusion with one or more persons and/or the fraud and dishonesty of any person committed with the connivance of the Liquidator;
• To provide creditors with the opportunity to establish a Liquidation Committee when a decision procedure is required;
• If a Liquidation Committee is established prepare a certificate of constitution and hold the first Committee meeting;
• Obtain the company’s books and records;
• Establish whether the company has an occupational pension scheme.
Annual Statutory and Professional Compliance
In addition to the tasks identified above, the following statutory tasks will usually need to be done:
• Prepare and issue an Annual Report to creditors;
• Undertake bi-annual case reviews to ensure that the case is being progressed efficiently and in a timely manner; statutory duties have been undertaken; consider any ethical, money laundering and Bribery Act 2010 issues pertaining to the case and ensure that any identified matters are addressed;
• Submit VAT returns to HM Revenue and Customs, to ensure that any VAT refunds or payments are received or paid;
• Submit annual Tax returns to HM Revenue and Customs;
• Maintain the case cash book, by undertaking quarterly ISA reconciliations and ensure that funds received are paid into the ISA account.
Closing Statutory and Professional Compliance
After concluding all case related matters, a Liquidator is required to:
• Prepare and submit a letter to HM Revenue and Customs requesting clearance to close the case;
• Reconcile the cash book ready for closure;
• Prepare and issue the Final Account to creditors;
• Send the final receipts and payments account to the Court, the Official Receiver and the Insolvency Service and confirmation that I have received my release;
• If the creditors have so resolved, obtain my release from the Secretary of State;
• In the case of a Compulsory Liquidation obtain authorisation from the Official Receiver to destroy the books, papers and other records of the company;
• Retain and store the liquidation records for a minimum of 6 years after the vacation of office.
Tasks in relation to creditors’ claims
• Ensure that all creditors’ claims are listed with the correct addresses and references and that the amount claimed correlates to the Statement of Affairs;
• Enter proof of debt forms/claims as and when they are received;
• Before paying a dividend, review the level of funds available and ensure that all costs and expenses have been paid in accordance with the rules of priority;
• Assignment of the right to dividend, where notice is given to the office holder by a person entitled to a dividend that he wishes the dividend to be paid to another person;
• Deal with enquires from creditors;
• Adjudicate on claims;
• Declare and pay a dividend, if sufficient funds are available.