BUSINESS OBJECTIVES ACHIEVED
When a company runs into difficulties, those involved in the management of that business can face allegations of criminality over the way the business was run prior to its insolvency. The team at Forbes are experienced in the representation of both companies and individuals at this extremely stressful time.
If you are facing the possibility of insolvency and are concerned about the prospect of a criminal investigation it is essential to seek expert advice immediately.
If instructed early we will always endeavor to avoid a report to the Insolvency Service investigation team. This is normally achieved by negotiating and co-operating wherever possible. Such cases often require a multi-disciplinary legal team that can assist you to navigate issues relating to insolvency, company, employment, and criminal law. Forbes Solicitors specialist insolvency defence team can offer you this bespoke service at a very reasonable cost.
Section 432(2) of the Companies Act 1985 gives the Secretary of State the power to appoint an inspector(s) to investigate the affairs of a company if it appears that the company is being conducted:
Section 448 of the Act provides a search warrant can be obtained if there are reasonable grounds for believing:
Section 447 of the Act provides the Secretary of State may direct, or the investigator authorised by the Secretary of State may give directions to a company/or any other person to produce documentation or information required.
This power is not restricted for use against the company directors but can also be directed towards any person connected with the company
Company Investigators may also seek to obtain information by interviewing company directors, senior management, employees and others connected to the company.
An investigation by the Insolvency Service can be devastating to a business both in terms of its reputation and also the potential consequences which include:
Common criminal proceedings include offences of fraudulent trading, failure to preserve company accounting records, and failure to disclose property to the Official Receiver.
If you're facing an insolvency service investigation or prosecution get in touch with our specialised insolvency defence team now on 0800 689 0831 or complete our online contact form.