Does a firm of liquidators have to request professional clearance?

Does a firm of liquidators have to request...

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This might be an obvious question, but does a liquidator have any obligation to contact a practice acting for the client going into liquidation to request professional clearance?

Only we've got a client who has gone down that route, the liquidator hasn't got in touch at all and the client has now disappeared from all our HMRC lists! I would have thought some contact would be required to obtain the "full picture"....

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By bernard michael
21st Mar 2012 11:52

Professional clearance - No. The client no longer exists from the date of liquidation. However they will probably ask you for certain information

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By dhalsey
21st Mar 2012 12:02

Thanks Bernard. Do you know if we are under obligation to provide certain information, given that we may or may not be paid and may have arrears for a typical client going into liquidation?

Presumably the usual minimum handover information stipulated by the ACCA would be applicable and without charge, however much it hurts!

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By carnmores
21st Mar 2012 14:33

yes you have to give them what they want

there have been a number of threads on this before - hand over all the papers and move on

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By bernard michael
21st Mar 2012 14:45

Your specfic question is answered by s.236 of The Insolvency Act 1986  below:-

The only get out would be if you claimed a lien on the documents for unpaid fees. The liquidator may honour this and give you a first charge on recoverable money but don't bet on it.

Go with Carmores answer as the easiest way out

"(2) The court may, on the application of the office-holder, summon to appear before it—(a) any officer of the company,(b) any person known or suspected to have in his possession any property of the company or supposed to be indebted to the company, or(c) any person whom the court thinks capable of giving information concerning the promotion, formation, business, dealings, affairs or property of the company.(3) The court may require any such person as is mentioned in subsection (2)(a) to (c) to submit an affidavit to the court containing an account of his dealings with the company or to produce any books, papers or other records in his possession or under his control relating to the company or the matters mentioned in paragraph (c) of the subsection 

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By dhalsey
21st Mar 2012 15:17

Ok, thanks for clarification.

Not a problem at present thankfully - I was referring more to a hypothetical scenario, but given the lack of communication with one particular client (who thankfully were not in arrears), I wondered specifically what the obligations were.

It just seemed odd that we weren't entitled to any form of professional communication as we would have to ourselves as part of an ordinary handover.

Thanks for the responses.

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By neildempsey
22nd Mar 2012 09:41

From a liquidator's point of view...

You don't mention what kind of liquidation it is. We are often appointed by the court rather than by the shareholders/directors, and if we can't contact the directors, or they don't co-operate, and the accounts lodged at RoC don't say who the accountants are, then we are often completely in the dark as to who to contact!

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