The Insolvency Service investigation
When a company enters liquidation or administration the IP has to carry out a statutory investigations into the causes of the company’s demise and submit their report to Department for Business Innovation & Skills (BIS) aka The Insolvency Service.
BIS can take action against directors, including:
- Issuing a fine
- Disqualification for between two and fifteen years
- Sending the director/s to prison
IP carries out a statutory investigation into the causes of the company’s demise and submits their report to Department for Business Innovation & Skills (BIS) aka The Insolvency Service
Sometimes this will lead to a director being banned from acting as a director in the future (up to fifteen years) together with fines. In the worst cases directors may even get a prison sentence although this is fortunately quite rare.
The public can also make complaints to BIS direct here: