The official receiver is a civil servant employed by the Insolvency Service who becomes the liquidator of a company wound up by the court, and the trustee of a bankrupt’s estate. They are not a licensed insolvency practitioner, and they are not a provisional liquidator: a provisional liquidator is a separate appointment the court can make between the presentation of a petition and the hearing, to protect assets in the meantime. In voluntary liquidations, an insolvency practitioner is appointed by a company’s directors or creditors to act on their behalf. However, if a company has been petitioned by a creditor and wound up by the court, it is the official receiver who must assume this role.
The official receiver becomes liquidator automatically on the making of the winding-up order, under section 136(2) of the Insolvency Act 1986. No appointment by the court is needed. They are responsible for administering the initial stages of the liquidation. This includes:
- Taking control of the company’s affairs;
- Protecting the company’s assets for the benefit of its creditors;
- Reporting on the conduct of company directors;
- Examining why the company became insolvent.
The official receiver will interview company directors, examine the financial records of the company and make background enquiries with third parties like banks and accountants. They will also report to company creditors and shareholders with details of the company’s assets and liabilities.
When it comes to realising the company’s assets, the official receiver may consult the creditors about appointing an insolvency practitioner in their place. The OR will only ask the Secretary of State to appoint a private insolvency practitioner if the additional skills and resources are required. If no private insolvency practitioner is necessary, the official receiver will complete the liquidation of the company.
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If you want to speak to an insolvency practitioner, we’re always happy to help. As you can see above, we’re bound by a duty of confidentiality, so you can feel assured that we will try and help you resolve your company’s financial matters in a discreet and professional manner.