Director information hub: Duty to co-operate with office-holder

Responsibilities for directors

When a company enters administration or liquidation an office holder is appointed to act as the administrator or liquidator of the insolvent company.

Where a company has been wound up by the court by compulsory liquidation, the OR has additional duties.

Directors must:

• provide the office holder with all the relevant company information and paperwork
• attend meetings with the office holder if needed
• answer all questions related to company activity (normally by completing a questionnaire or submitting a statement of affairs)

The office-holder will use the information to carry out their legal duties in dealing with the administration or liquidation. This includes:

• realising assets
• reporting to creditors
• submitting a report on the conduct of the directors

Reports on director conduct are considered by the Insolvency Service on behalf of the Secretary of State for the Department of Business and Trade. Any concerns found, including failing to co-operate with the office holder, can lead to a director being disqualified or other consequences.

Failure to co-operate

If directors do not provide information or attend a meeting as required, the office holder can apply to the court for their private examination. The court can order a director to do what the office holder has requested.

The OR can also call a public examination in court.

There are consequences for not following a court order. This can include:

• A fine

  If the court rules in favour of the office holder and the director does not provide information or attend meetings as required, the director may receive a fine.

• Imprisonment

  If the director does not follow the court order they may be imprisoned for contempt of court.

• Warrant for arrest

  If the director does not attend the examination, the court can issue a warrant for their arrest.

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