Official receiver


An officer of the Insolvency Service of the United Kingdom, an official receiver is an officer of the court to which they are attached. The OR is answerable to the courts for carrying out the courts' orders and for fulfilling their duties under law. They also act on directions, instructions and guidance from the service's Inspector General or, less often, from the Secretary of State for Business, Energy and Industrial Strategy.

Responsibilities

An OR has the following responsibilities:
The bankrupt or the company directors must give the OR information about their own or the company's affairs. The OR will interview them, examine their financial records, and make background enquiries of others who have had dealings with them. In every case, the OR reports to creditors and shareholders giving details of assets and liabilities.
Depending on the nature and monetary value of the assets, the OR may arrange a meeting of the creditors to consider appointing an IP to act as trustee or liquidator in his place. Alternatively, the OR may consult the creditors and ask the Secretary of State to appoint an IP..
If an IP is appointed, the OR will hand over administration. Otherwise, the OR acts as trustee or liquidator to sell the assets, distribute the proceeds to creditors, and complete the administration of the estate. Whether or not the OR continues as trustee or liquidator, he remains responsible for investigating the insolvent's affairs.

History

The office of official receiver was established by the Bankruptcy Act 1883. His role was originally confined to personal bankruptcy, but it was extended to companies in compulsory liquidation by the Companies Act 1890.