Guidance Notes for the Completion of Statutory Reports and Returns

These notes are important and should be read before completion of any report or return under section 7 of the Act.

2.1 What is the legislation?
- What are the reporting duties of Practitioners?
2.2 What is the role of the Disqualification Unit?
2.3 How does the Unit decide when to apply for disqualification?
2.4 Late reporting

3 Completing the report or return

3.1 The 'D2' interim return
3.2 Completing the 'D1' conduct report
- General considerations
- Directors’ details (section 3 of the D1)
- Shadow or de facto directors
- The inactive director
- Connected companies (section 4 of the D1)
- Unfit conduct (section 5 of the D1)
- Statement of Affairs, Accounts and Report to Creditors (section 6 of the D1)
- Other proceedings (section 7 of the D1)

4 Unfit conduct

4.1 Schedule 1 CDDA - Matters for determining unfitness of directors

Part I Matters that apply in all cases
- Misfeasance or breach of duty
- Misapplication or retention of company money or property
- Transactions defrauding creditors
- Failure to comply with the Companies Acts 1985 and 1989

Part II Relevant matters if the company has become insolvent
- Causes of failure and insolvency
- Trading without regard to the interests of creditors
- Trading without reasonable prospect of paying creditors' claims
- Crown debts
- Phoenix companies
- Consumer prepayments/deposits
- Transactions at an undervalue, preferences and dispositions of property
- Duty to assist the Practitioner and to deliver property
Showing that the company was insolvent

5 Other matters

5.1 Disclosure of material obtained under section 235 and 236
of The Insolvency Act 1986
5.2 Availability of accounting records
5.3 Payment to Practitioners
5.4 More than one office-holder
5.5 Scotland

6 Contact points

6.1 England and Wales
6.2 Scotland
6.3 Insolvency Service Hotline                             

Appendix  1                                                                                                                            
Key points of SIP 2: a liquidator's investigation into the affairs of an insolvent company

Appendix  2                                                                                                                            
Documents and information to be included with a report

Appendix  3                                                                                                                            
Flowchart: How a Practitioner's report is processed

Appendix  4                                                                                                                            
Flowchart: The reporting decision