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Insolvency for UK firm - seeking advice
20-Jan-2026 (In Corporate Law)
I am seeking advice regarding a UK Private Limited Company. The company is insolvent with significant creditor debt and shareholder equity. We are looking to liquidate via Insolvency Practioner (IP).
My specific questions are, how thoroughly do IP investigate in practice? How many years back do they go? Do they investigate every transaction?
Considering the company has no money, will they not just close it without investigation?
In UK liquidation, an IP must investigate directors’ conduct and key transactions, usually up to 2–6 years. They don’t check every entry, but review risks. Even if no funds, statutory investigation still occurs.
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Adv. Pankaj Bajaj
Delhi | 5+ Answers
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In practice, an Insolvency Professional’s investigation is risk-based, not exhaustive. They typically review the last 2-3 years, but can go further (up to 6 years) if red flags appear. They do not examine every transaction – only those suggesting preferences, undervalue transactions, wrongful trading, or director misconduct. Further, lack of funds does not stop investigation. If misconduct is suspected, the IP must report it, and further action may follow through regulators or creditors, even if the company itself has no assets.
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Adv. Ayushi Priyadarshini
Delhi | 5+ Answers
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Since the conveyance deed in favour of the current owner is 30 years old, the ownership is generally considered legally settled, depending on the verification of documents and continuity of title. Since, the property is self-acquired and the siblings of the current owner do not have any legal right over it as a precaution and to avoid any future disputes, it is better to obtain a NOC. You can obtain the relinquishment deed from the siblings as well.
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Adv. Namita Kumari
Delhi | 5+ Answers
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