Liquidators will welcome the recent decision of the Director of Corporate Enforcement to reduce their reporting requirement in cases where a decision has been definitively made either to relieve or not relieve them of their statutory obligation to take restriction proceedings against a company's directors.
Under Section 56 of the Company Law Enforcement Act 2001, liquidators of insolvent companies are obliged to make a report to the Office of the Director of Corporate Enforcement (ODCE) outlining the state of the company's affairs and to provide information on the conduct of the directors before the liquidation. Prior to this decision, liquidators were required to provide further reports to the ODCE at regular intervals, and a final report on completion of the liquidation. The ODCE may, however, request further reports where it is considered necessary.
This is good news for insolvency practitioners who will enjoy reduced costs as a result of this development.