Secretary of state appointment11/1/2023 ![]() ![]() Where a Secretary of State application is not urgent and relates to a case within the criteria outlined below, the official receiver can make his/her application simply by posting it to IPU. If no resolution is passed at those meetings for the appointment of an insolvency practitioner, then the official receiver remains liquidator or becomes trustee and may make an application to the Secretary of State. A Secretary of State appointment cannot be made where the official receiver is receiver and manager of a bankrupt’s estate, as opposed to trustee.Īn application should not be made where steps have been taken to call meetings. The official receiver when acting as liquidator or trustee can normally apply at any time to the Secretary of State for the appointment of a practitioner in his/her place. Such an agreement is often referred to as an agreement in principle (see paragraph 17.53). IPU act on behalf of the Secretary of State in making insolvency practitioner appointments and in the consideration of those cases which require prior agreement before the appointment. IP Policy deals with policy issues and all matters concerning the conduct of non Secretary of State licensed insolvency practitioners and the regulation of their recognised professional bodies. IPU is also responsible for maintaining accurate details of all insolvency practitioners on Central Index and the Individual Insolvency Register (E.IIR) and deals with practitioners’ sanction applications in the absence of a creditors committees and objections to release. IPU carries out a number of Secretary of State functions that include dealing with Secretary of State applications from Official Receivers, the registration of Individual Voluntary Arrangements and the licensing and regulation of Insolvency Practitioners (The Secretary of State currently licenses some 100 of the 1700 insolvency practitioners nationwide). The Insolvency Practitioner Unit (IPU) in Birmingham is part of IP Policy in London. The bankrupt’s attention should also be drawn to the possibility of a voluntary arrangement (see Chapter 57 - Alternative Individual Procedures, Part 1), a Fast Track Voluntary Arrangement (see Chapter 20 - Official Receiver's role in voluntary arrangements) or annulment application (see Chapter 6A - Annulments).ġ7.49 Role of Insolvency Practitioner Unit In cases where the insolvent’s interests might be adversely affected by the early appointment of an insolvency practitioner (for example, in cases where there is a surplus) it is important that the insolvent is fully informed of the consequences of any appointment. In discussing a possible Secretary of State appointment with an insolvency practitioner, the official receiver should not suggest that the appointment is a foregone conclusion as the Secretary of State may decline to make the appointment. ![]() If there is a possibility of contention, dispute or conflict, then there is a strong presumption that a meeting of creditors should be held. The Secretary of State’s power to make an appointment must only be used in the circumstances set out in this chapter and should not be exercised simply for the convenience of the official receiver. (See paragraph 17.67 for the position of Crown creditors.) A file note should be retained on the case file detailing the creditors consulted, the amounts of their claims and their views. Of paramount importance in any appointment by the Secretary of State, is that, unless this chapter indicates otherwise, the creditors’ views must have been sought and adhered to. The Secretary of State may appoint an insolvency practitioner as liquidator or trustee as an alternative to holding a meeting of creditors in certain circumstances. In the majority of cases where an insolvency practitioner appointment is desirable, a meeting of creditors should be held to enable the creditors to make the appointment (see Part 3).
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