The Insolvency Regulations (Northern Ireland) 1996

Records to be maintained by Liquidators and the provision of information

Financial records

10.—(1) This regulation does not apply in the case of a members' voluntary winding up.

(2) The liquidator shall prepare and keep—

(a) separate financial records in respect of each company; and

(b) such other financial records as are required to explain the receipts and payments entered in the records described in sub-paragraph (a) or regulation 12(2), including an explanation of the source of any receipts and the destination of any payments;

and shall, subject to regulation 12(2) as to trading accounts, from day to day enter in those records all the receipts and payments made by him.

(3) In the case of a winding up by the court, the liquidator shall obtain and keep bank statements relating to any local bank account in the name of the company.

(4) The liquidator shall submit financial records to the liquidation committee when required for inspection.

(5) In the case of a winding up by the court, if the liquidation committee is not satisfied with the contents of the financial records submitted under paragraph (4) it may so inform the Department, giving the reasons for its dissatisfaction.

[E.R. 10]

Provision of information by liquidator

11.—(1) In the case of a winding up by the court, the liquidator shall, within 14 days of the receipt of a request for a statement of his receipts and payments as liquidator from any creditor, contributory or director of the company, supply free of charge to the person making the request, a statement of his receipts and payments as liquidator during the period of one year ending on the most recent anniversary of his becoming liquidator which preceded the request.

(2) In the case of a voluntary winding up, the liquidator shall, on request from any creditor, contributory or director of the company for a copy of a statement for any period, including future periods, sent to the registrar under Article 162, send such copy free of charge to the person making the request and the copy of the statement shall be sent within 14 days of the liquidator sending the statement to the registrar or the receipt of the request whichever is the later.

[E.R. 11]

Liquidator carrying on business

12.—(1) This regulation does not apply in the case of a members' voluntary winding up.

(2) Where the liquidator carries on any business of the company, he shall—

(a) keep a separate and distinct account of the trading, including, where appropriate, in the case of a winding up by the court, particulars of all local bank account transactions; and

(b) incorporate in the financial records required to be kept under regulation 10 the total weekly amounts of the receipts and payments made by him in relation to the account kept under sub-paragraph (a).

[E.R. 12]

Retention and delivery of records

13.—(1) All records kept by the liquidator under regulations 10 and 12(2) and any such records received by him from a predecessor in that office shall be retained by him for a period of 6 years following—

(a) his vacation of office, or

(b) in the case of the official receiver, his release as liquidator under Article 148,

unless he delivers them to another liquidator who succeeds him in office.

(2) Where the liquidator is succeeded in office by another liquidator, the records referred to in paragraph (1) shall be delivered to that successor forthwith, unless, in the case of a winding up by the court, the winding up is for practical purposes complete and the successor is the official receiver, in which case the records are only to be delivered to the official receiver if the latter so requests.

[E.R. 13]

Provision of accounts by liquidator and audit of accounts

14.—(1) The liquidator shall, if required by the Department at any time, send to the Department an account in relation to the company of the liquidator’s receipts and payments covering such period as the Department may direct and such account shall, if so required by the Department, be certified by the liquidator.

(2) Where the liquidator in a winding up by the court vacates office prior to the holding of the final general meeting of creditors under Article 124, he shall within 14 days of vacating office send to the Department an account of his receipts and payments as liquidator for any period not covered by an account previously so sent by him or if no such account has been sent, an account of his receipts and payments in respect of the whole period of his office.

(3) In the case of a winding up by the court, where:

(a) a final general meeting of creditors has been held pursuant to Article 124, or

(b) a final general meeting is deemed to have been held by virtue of Rule 4.132(5),

the liquidator shall send to the Department, in case (a), within 14 days of the holding of the final general meeting of creditors and, in case (b), within 14 days of his report to the court pursuant to Rule 4.132(5), an account of his receipts and payments as liquidator which are not covered by any previous account so sent by him, or if no such account has been sent an account of his receipts and payments in respect of the whole period of his office.

(4) In the case of a winding up by the court, where a statement of affairs has been submitted under the Order, any account sent under this regulation shall be accompanied by a summary of that statement of affairs and shall show the amount of any assets realised and explain the reasons for any non-realisation of any assets not realised.

(5) In the case of a winding up by the court, where a statement of affairs has not been submitted under the Order, any account sent under this regulation shall be accompanied by a summary of all known assets and their estimated values and shall show the amounts actually realised and explain the reasons for any non-realisation of any assets not realised.

(6) Any account sent to the Department shall, if it so requires, be audited, but whether or not the Department requires the account to be audited, the liquidator shall send to the Department on demand any documents (including vouchers and bank statements) and any information relating to the account.

(7) Any account sent to the Department under this regulation shall be on a form obtainable from the Department for the purpose.

[E.R. 14]

Production and inspection of records

15.  The liquidator shall produce on demand to the Department, and allow it to inspect, any accounts, books and other records kept by him (including any passed to him by a predecessor in office), and this duty to produce and allow inspection shall extend—

(a) to producing and allowing inspection at the premises of the liquidator; and

(b) to producing and allowing inspection of any financial records of the kind described in regulation 10(2)(b) prepared by the liquidator (or any predecessor in office of his) before 31st January 1997 and kept by the liquidator;

and any such demand may—

(i) require the liquidator to produce any such accounts, books or other records to the Department, and allow it to inspect them—

(A) at the same time as any account is sent to the Department under regulation 14; or

(B) at any time after such account is sent to the Department;

whether or not the Department requires the account to be audited; or

(ii) where it is made for the purpose of ascertaining whether the provisions of these Regulations relating to the handling of money received by the liquidator in the course of carrying out his functions have been or are likely to be complied with, be made at any time, whether or not an account has been sent or should have been sent to the Department under regulation 14 and whether or not the Department has required any account to be audited.

[E.R. 15]

Disposal of company’s books, papers and other records

16.—(1) The liquidator in a winding up by the court, on the authorisation of the official receiver, during his tenure of office or on vacating office, or the official receiver while acting as liquidator, may at any time sell, destroy or otherwise dispose of the books, papers and other records of the company.

(2) In the case of a voluntary winding up, the person who was the last liquidator of a company which has been dissolved may, at any time after the expiration of a period of one year from the date of dissolution, destroy or otherwise dispose of the books, papers and other records of the company.

[E.R. 16]

Voluntary liquidator to provide information to Department

17.—(1) In the case of a voluntary winding up, a liquidator or former liquidator, whether the winding up has been concluded under Rule 4.233 or not, shall, within 14 days of a request by the Department, give the Department particulars of any money in his hands or under his control representing unclaimed or undistributed assets of the company or dividends or other sums due to any person as a member or former member of the company and such other particulars as the Department may require for the purpose of ascertaining or getting in any money payable into the Insolvency Account.

(2) The particulars referred to in paragraph (1) shall, if the Department so requires, be certified by the liquidator, or former liquidator, as the case may be.

[E.R. 17]

Payment of unclaimed or undistributed assets, dividends or other money on dissolution of company

18.  In the case of a company which has been dissolved, notwithstanding anything in these Regulations, any money in the hands of any or any former liquidator at the date of dissolution of the company or his earlier vacation of office, representing unclaimed or undistributed assets of the company or dividends or held by the company in trust in respect of dividends or other sums due to any person as a member or former member of the company, shall forthwith be paid by him into the Insolvency Account.

[E.R. 18]