A Members Voluntary Liquidation and two CVLs
A Typical Working Day for Hugh Jesseman, Licensed Insolvency Practitioner, at our London Office
Hugh helped found Antony Batty & Co in 1997 and is one of the Insolvency Practitioners at our Central London headquarters. In this article, he summarises a ‘typical’ day at the office, which gives an insight into the wide variety of work an insolvency practitioner undertakes. It’s not just about following the ICAEW’s statutory requirements, it’s also about having a ‘feel’ for the business of insolvency and restructuring, to deliver the best possible outcome. This day featured work on a Members Voluntary Liquidation, two Creditors Voluntary Liquidations, along with a range of other tasks.
1. Distribution to Shareholders in a Members Voluntary Liquidation
A Members Voluntary Liquidation is often used to enable the shareholders to realise their interest in the company when they do not have succession plans. In this case, my task was to review the accounts, tax position, deeds of indemnity & shareholder details, then distribute a sizeable amount of the surplus funds to the shareholders. I also prepared an “in specie” distribution deed to transfer some cars owned by the Company to the member rather than selling them and distributing the cash.
2. Work on Two Creditors Voluntary Liquidations
With the first Creditors Voluntary Liquidation, I reviewed the proofs of debt submitted by creditors in the CVL with a view to agreeing them for a small distribution. This is a vital part of the job to ensure that only valid claims are agreed, and any discrepancies are fully explained. I requested further details from one creditor who submitted a claim significantly higher than they told the director they would be claiming for before the liquidation.
Later, on another CVL, I reviewed the details of a preliminary investigation into a director’s conduct prior to the CVL. Such investigations are required in every CVL and Administration we undertake. In this case, my objective was to ascertain if there were any recoveries that could be made for the benefit of creditors.
3. Advising a Business Facing Insolvency That the Only Option was Insolvency
As Insolvency Practitioners and business restructuring specialists, our aim is to save businesses if possible.
In this case, I met a director of a company, which ran a small chain of petrol stations. The petrol company was in the process of taking back the stations, leaving the company with no trade & no assets. We sat down and discussed all the options with the director. Sadly, the conclusion was that liquidation was the only prospect. Sometimes that happens, through no fault of the director. However, I recommended that the director considered legal action for breach of contract against the petrol company and was able to suggest a firm of solicitors he should speak to.
4. Technical Queries from Staff and Administrative Tasks
With over 20 members of staff here at Antony Batty & Company, all skilled insolvency professionals, it’s important to keep the team members up to speed and be available to field and answer any technical queries they might have. In this case we discussed some issues on a case where a proxy was submitted for a forthcoming creditors’ meeting and advised the team member to contact the creditor to rectify the issues prior to the meeting.
We also discussed a query received by a colleague regarding a historic bankruptcy and its application on the bankrupt’s pension.
Finally, I made time to review and submit the monthly specific bond ‘bordereau’ returns to our bond provider. It’s a legal requirement for all appointment taking insolvency practitioners to hold a general practising bond and to take out specific bonds on each new appointment to the value of the non-secured assets.
It’s the Same for all Our Insolvency Practitioners and Supervisors
It’s true to say that for all of us at Antony Batty, whether working in our Central London office, or in our Brentwood, Salisbury or Cotswolds offices, no day is ever the same. This day heavily focused on the members voluntary liquidation and the two CVLs, but equally, the focus might be an administration or a CVA. Having worked on more than 2,000 insolvency cases since we started in 1997, our team has the experience and the skill to deliver the best possible outcome for our clients.