Confidential Advice Line: 0800 063 9221

I’m unhappy with our insolvency practitioner – can I appoint a new one?

The directors of a failing company are likely to approach an insolvency advisor or licensed practitioner initially, for advice on how to proceed. If a formal insolvency procedure is decided upon, they will need to appoint a licensed IP to administer it.

At this stage, company members vote on the insolvency practitioner’s appointment at their members’ meeting, after which a meeting of creditors is generally held. It is incumbent on all insolvency practitioners licensed by the government to act on behalf of creditors in any formal insolvency procedure, however.

Failing to do this is illegal, and as a creditor you have recourse to vote on the appointment of a new office-holder at your creditors’ meeting, if the majority feel the existing IP is not fully representing creditor interests.

Begbies Traynor is able to represent creditors at this meeting. We have vast experience in this role, and can act as office-holder should the majority of creditors vote against the current appointment.

Why might you feel disenchanted with the insolvency practitioner?

The level of fees charged by insolvency practitioners can sometimes be the cause of dispute, but this is one of the issues addressed during a creditors’ meeting – agreeing and setting the IP’s remuneration.

Other problems can arise if the insolvency practitioner or advisor has promoted themselves as ‘director-friendly’ simply with a view to winning business via company liquidations. As we mentioned earlier, it is illegal to discount the rights of creditors during a formal liquidation process, and not to assume a duty of care to creditor groups.

Whilst it is reasonable to assume that any insolvency advisor or practitioner will offer guidance to company directors in times of financial trouble, licensed IPs must act in the best interests of company creditors as a whole.

Who monitors an insolvency practitioner’s professional conduct?

If after the creditors meeting, you become dissatisfied with the IP’s conduct for any reason and wish to make a complaint, you should approach the office-holder in the first instance in an attempt to resolve the issue.

The Insolvency Service runs an online ‘Complaints Gateway’ should you remain unhappy after contacting the IP in writing, or in person. This ensures your complaint is viewed by the Insolvency Practitioner Services (IPS) department, and an investigator will be appointed to look into the situation.

Although the IPS will not step in with regards to specific insolvencies, and do not take disciplinary measures against an IP, if your complaint is upheld they will take all circumstances into account in their decision as to whether the IP should continue to be authorised.

If you are unhappy with the conduct of an IP, you can contact us. We have a network of offices around the country, and can represent your interests at creditors’ meetings. Speak to one of our licensed insolvency practitioners to find out how best to proceed.

47 Regional UK Offices

Find your local Begbies Traynor office and speak to an adviser today.

Find your Local Office
0800 063 9221

Call our Confidential Advice Line. Calls to this number are free of charge.

Call us now...
Request a Meeting

We invite you to come and discuss your enquiry with us at your convenience.

Request a meeting...
0800 464 0871

Call our Confidential Advice Line. Calls to this number are free of charge.

Call us now...
Request a Meeting

We invite you to come and discuss your enquiry with us at your convenience.

Request a meeting...
0161 837 1700

Call our Confidential Advice Line. Calls to this number are free of charge.

Call us now...
Request a Meeting

We invite you to come and discuss your enquiry with us at your convenience.

Request a meeting...
Advice for businesses on EBTs after HMRC Supreme Court victory
Begbies Traynor currently advising numerous businesses
HMRC sends out follower notices to reclaim tax lost to Employee Benefit Trusts
Find out more →
 
Open Banking to Reshape the Alternative Finance Sector
CMA mandates the adoption of Open Banking by early 2018
Will see alternative lenders competing on a level playing field with dominant banks
Read more →
 
Join thousands of professionals by signing up for our updates
Analysis and Opinion from our Partners
Top Industry News
Register Now →
 

Advice you can trust

We are accredited by the following industry leading organisations

Insolvency Practitioners Association Institute of Chartered Accountants in England and Wales R3: Association of Business Recovery Professionals ICAEW Business Advice Service Turnaround Management Association ACCA (the Association of Chartered Certified Accountants) ICAS | The Institute of Chartered Accountants of Scotland

Contact the Begbies Traynor team

or Find your Nearest Office
Processing...