| 1 |
Which
part of the DTI investigates complaints about companies? |
Companies
Investigation Branch (CIB) exercises the Secretary of
State’s powers of investigation under the Companies
Acts. |
| 2 |
What can
CIB investigate? |
Only
limited companies and Limited Liability Partnerships that
have a business address in England, Wales or Scotland,
provided that they have not been dissolved. |
| 3 |
What if I
have a complaint against a sole trader or a partnership? |
By
law CIB cannot investigate sole traders or partnerships
(except Limited Liability Partnerships, which are
registered at Companies House).
If
you have a complaint about a business which is not run by
a limited company your local Trading Standards Department
or Citizens’ Advice
Bureau may be able to help.
If
you are a consumer, you may wish to seek help or advice
from “Consumer Direct” www.consumerdirect.gov.uk
or telephone 08454 04 05 06.
|
| 4 |
What if
the company is in liquidation? |
CIB
will consider complaints against companies which have
entered into formal insolvency proceedings
(administration, administrative receivership, and
voluntary liquidation).
However,
CIB is unlikely to investigate where the misconduct
alleged can be dealt with by the Insolvency Practitioner
involved, who has a duty to report to the Secretary of
State under the Company Directors Disqualification Act
1986.
CIB
will not consider a complaint against a company in
compulsory liquidation ( i.e. where a winding up order has
been made by the court) because the Official Receiver has
a duty to investigate such companies. A list of Official
Receivers can be found on the Insolvency Service Website
at http://www.insolvency-service.co.uk/officemap.htm. |
| 5 |
Can I
insist on an investigation? |
No |
| 6 |
What sort
of complaints will CIB investigate? |
Any
complaint that provides good reason for an investigation
and where there is both a public interest in investigating
and the prospect of follow up action resulting. Generally
there must be reasonable grounds to suspect fraud, serious
misconduct, or material irregularity in a company’s
affairs.
CIB
will not usually investigate where:
·
The
only issue is non payment of a debt, or resolution of a
commercial dispute (unless there appears to be a pattern
of misconduct).
·
The
issue is internal to the company, its management, or
shareholders and there is no wider public interest in
investigating. CIB has no powers to intervene in a company’s
internal affairs, management or control.
·
The
complaint is better dealt with by another public body
(e.g. the Financial Services Authority for complaints
against businesses in the financial services industry).
·
The
complaint is about the quality of goods or services, or
delay in supplying them. You should consider contacting
“Consumer Direct” in the first instance www.consumerdirect.gov.uk
or telephone 08454 04 05 06 .
HOWEVER,
where payment has been made in advance, and the company
appears to have no intention of supplying the goods or
services, it may be appropriate for CIB. |
| 7 |
What can
CIB do if it does investigate? |
It can:
·
Present
a petition to the court to wind up a company in the public
interest
·
Apply
to the court to disqualify a director
·
Prosecute
company officials or refer evidence to other investigators
or prosecutors (e.g. the police or the Serious Fraud
Office)
·
Refer
information to other regulators or bodies to consider
disciplinary or other action against their members (e.g.
the Institute of Chartered Accountants, or the Law
Society)
Send
a Warning letter to the company. |
| 8 |
If CIB
investigates will they tell me what they find out ? |
No.
Investigations are confidential and we are not allowed to
tell you what we have found out. This includes feedback on
our original decision whether to investigate a particular
company, or not. |
| 9 |
Will I
ever know what has happened as a result of an
investigation? |
You
might if CIB takes action that becomes public knowledge
(e.g. a winding up, prosecution or disqualification) but
only when the matter is dealt with in open court.
Successful outcomes are usually reported in the press. |
| 10 |
Will I
have to pay for an investigation? |
No. |
| 11 |
If a
company is trading whilst it is insolvent will CIB
investigate? |
Trading
by a company whilst it is insolvent is not in itself
grounds to justify an investigation. There must be wider
concerns about a company or its trading practices. |
| 12 |
Will
CIB investigate where it appears that a disqualified
person is acting in the management of a company? |
The
Insolvency Service operates a “Hotline” which enables
people who have information about disqualified directors
and undischarged bankrupts, who blatantly disregard their
disqualification, to pass it on. Where appropriate, the
matter will be referred to CIB.
However,
if there are other concerns about a company’s activities
(and not simply because a disqualified person may be
involved), especially where the company is still trading,
it would be more appropriate to refer the matter to CIB
directly.
Click
here for details of the “Hotline”
|
| 13 |
Will
CIB investigate so-called ‘Phoenix Companies’? |
Setting
up a ’Phoenix Company’ - to carry on the same or
similar business of an earlier company which has “gone
bust” - is not in itself unlawful.
However,
CIB will consider investigating allegations of this nature
where there are wider concerns about either the trading
practices of the companies or the circumstances
surrounding the failure of successive companies. We treat
each case on its individual merits.
|
| 14 |
Can
CIB help me to recover money I am owed by a company? |
No.
CIB has no power to recover debts on your behalf, and even
when we decide to investigate we are prevented by law from
providing information to creditors about a company’s
activities. Any action we do take will be in the wider
public interest, and must take into account the interests
of all those involved, not just individual creditors. |
