How Many Bankruptcy Petitions have the IS and the DBIS issued

Eric Newbegin made this Rhyddid Gwybodaeth request to Insolvency Service

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Roedd y cais yn llwyddiannus.

Dear Insolvency Service,

Please advise, separately for each of the last five calendar years:

How many individuals the Insolvency Service (IS) and separately, the Department for Business, Innovation and Skills (DBIS) have issued proceedings against under the Company Directors Disqualification Act 1986?

Of those, against how many individuals was Judgment obtained?

Of those individuals against whom the IS or the DBIS obtained Judgment, against how many of those individuals was an order for costs also made?

What is the sum total of the costs you have been awarded in respect of the above Judgments?

What is the sum total of the awarded costs that the IS and DBIS respectively have recovered?

Against how many of the individuals the IS and the DBIS obtained Judgment or a costs order against have the IS and DBIS issued bankruptcy proceedings?

Of those individuals against whom the IS or the DBIS have issued bankruptcy proceedings, how many have had a bankruptcy order made against them?

What are the total costs to IS and DBIS incurred in connection with issuing, pursuing and collecting under the issued bankruptcy petitions?

What is the sum total recovered by the IS and the DBIS in consequence of the making of the above referenced bankruptcy orders?

Yours faithfully,

Eric Newbegin

Dugald.Jaffray, Insolvency Service

Dear Mr Newbegin

 

Thank you for your e mail sent to the FOI inbox of the Insolvency
Service.  Your request has been passed to me to reply to.

 

I can inform you that the great majority of disqualifications are obtained
under section 6 of the Company Directors Disqualification Act 1986 (CDDA)
and all such disqualifications are dealt with by the Insolvency Service. 
Since 1 April 2006 the Insolvency Service has also dealt with all
disqualifications obtained under section 8 of the CDDA.  BIS do not deal
with disqualifications obtained under section 6 or 8 and are only involved
with some disqualification orders made under section 2 of the CDDA, please
see the next paragraph regarding section 2.

 

A disqualification order can also be made under section 2 of the CDDA
following a conviction in criminal proceedings “in connection with the
promotion, formation, management, liquidation or striking off of a
company, with the receivership of a company’s property or with his being
an administrative receiver of a company”.  Criminal proceedings are
instituted by a number of prosecuting authorities in respect of which a
section 2 disqualification order could be made following conviction.  BIS
Criminal Enforcement are one such prosecuting authority.  As far as I am
aware, no costs are claimed in respect of section 2 disqualification
orders, as there will be no  disqualification costs relating to the
obtaining of such an order or they will be minimal.

 

I should inform you that section 6 and section 8 disqualification cases
usually take longer than one year to complete and because of this fact,
there is an overlap in the disqualification figures from year to year. 
Consequently the annual figures in respect of the various categories in
the table below do not refer to the same cases across those categories in
one particular year.  I should also mention that the Insolvency Service
records information in financial rather than calendar years, the financial
year running from 1 April to 31 March.

 

As regards disqualification costs, I should inform you that costs are
recovered in some disqualification cases where a disqualification order
has not been made.  This is because in some cases where disqualification
proceedings have been issued and the substantive matter has not yet been
considered by the court, the defendant subsequently gives a
disqualification undertaking which is accepted by the Secretary of State. 
A disqualification undertaking has the same effect in law as a
disqualification order. In such cases the disqualification proceedings are
discontinued, although costs may be claimed and recovered from the
disqualified person. The costs figures recorded by the Insolvency Service
do not distinguish between cases where a disqualification order has been
made and cases where a post-issue disqualification undertaking has been
accepted.

 

Attached below is a table providing figures in respect of each of the last
5 financial years for disqualification proceedings issued,
disqualification orders made and disqualification undertakings accepted
post-issue.  As regards disqualifications obtained under section 8, the
available figures do not distinguish between disqualification orders and
undertakings.  Please note that the 2012-13 figures have not yet been
audited and are therefore subject to revision. I should mention that
additionally some cases, where disqualification proceedings have been
issued, are withdrawn by the Secretary of State, and a few cases are lost,
that is, the court decides not to make a disqualification order after
considering the evidence presented.

 

 

+------------------------------------------------------------------------+
|  |Proceedings|S6 Orders|S6 Post-issue |S8 |
| |Issued | |Undertakings |disqualifications|
|  | | | | |
|-------+-----------+---------+------------------------+-----------------|
|2008-09|640 |207 |354 |29 |
|-------+-----------+---------+------------------------+-----------------|
|2009-10|651 |219 |347 |10 |
|-------+-----------+---------+------------------------+-----------------|
|2010-11|621 |221 |343 |15 |
|-------+-----------+---------+------------------------+-----------------|
|2011-12|486 |180 |292 |12 |
|-------+-----------+---------+------------------------+-----------------|
|2012-13|416 |131 |254 |4 |
+------------------------------------------------------------------------+

 

 

As regards disqualification costs, the statistics maintained by the
Insolvency Service only record total costs awarded and total costs
recovered in a particular financial year.  Again there is an overlap in
the figures from year to year and consequently the annual figures in
respect of the 2 categories do not refer to the same cases across those
categories in one particular year. Also included in the costs figures
provided below are the petition and winding-up costs and recoveries
relating to companies wound up in the public interest by the Secretary of
State.  These winding-ups are dealt with by the Insolvency Service and the
costs and recoveries relating to this activity are not recorded separately
from disqualification costs and recoveries, however the amounts are not
significant in relation to the total costs and recoveries recorded,as
shown in the table below.  The table provides costs figures in respect of
each of the last 5 financial years, the majority of which amounts refer to
disqualification costs awarded and disqualification costs recovered.

 

+------------------------------------------------------------------------+
|  |   Costs Awarded |   Costs Recovered |
|--------------+---------------------------+-----------------------------|
|  |      £,000 |       £,000 |
|--------------+---------------------------+-----------------------------|
|2008/09 |      3,022 |       1,696 |
|--------------+---------------------------+-----------------------------|
|2009/10 |      2,506 |       1,484 |
|--------------+---------------------------+-----------------------------|
|2010/11 |      2,731 |       1,415 |
|--------------+---------------------------+-----------------------------|
|2011/12 |      2,269 |       1,378 |
|--------------+---------------------------+-----------------------------|
|2012/13 |      1,942 |       1,377 |
+------------------------------------------------------------------------+

 

 

As regards bankruptcy orders, I can inform you that 20 petitions for a
bankruptcy order were presented in the last 5 years, 1 bankruptcy order
was made in 2009/10 and 4 bankruptcy orders were made in 2010/11. The
costs relating to the bankruptcy orders are not recorded as a separate
category.  A recovery of £885 was made in respect of one of the
bankruptcies, no recoveries were made in respect of the others.

 

Dugald Jaffray

 

Dugald.Jaffray | Investigations and Enforcement Technical Team |
Insolvency Service |

[email address] | 3rd Floor, 4 Abbey Orchard Street,
London SW1P 2HT | T: 020 7637 6585 | F: 020 7637 6230 |
[email address] | www.bis.gov.uk/insolvency

 

 

dangos adrannau a ddyfynnir

Dugald.Jaffray, Insolvency Service

Dear Mr Newbegin

 

As regards bankruptcy orders made, the information in my previous e mail
needs to be corrected.  In fact 3 bankruptcy orders were made in 2009/10
and 4 bankruptcy orders were made in 2010/11.  I apologise for the mistake
in my previous e mail.

 

Dugald Jaffray

Dugald.Jaffray | Investigations and Enforcement Technical Team |
Insolvency Service |
[1][email address] | 3rd Floor, 4 Abbey Orchard
Street, London SW1P 2HT | T: 020 7637 6585 | F: 020 7637 6230 |
[2][email address] | www.bis.gov.uk/insolvency

--------------------------------------------------------------------------

From: Dugald.Jaffray
Sent: 22 April 2013 15:00
To: '[FOI #154565 email]'
Subject: FW: Freedom of Information request - How Many Bankruptcy
Petitions have the IS and the DBIS issued

 

Dear Mr Newbegin

 

Thank you for your e mail sent to the FOI inbox of the Insolvency
Service.  Your request has been passed to me to reply to.

 

I can inform you that the great majority of disqualifications are obtained
under section 6 of the Company Directors Disqualification Act 1986 (CDDA)
and all such disqualifications are dealt with by the Insolvency Service. 
Since 1 April 2006 the Insolvency Service has also dealt with all
disqualifications obtained under section 8 of the CDDA.  BIS do not deal
with disqualifications obtained under section 6 or 8 and are only involved
with some disqualification orders made under section 2 of the CDDA, please
see the next paragraph regarding section 2.

 

A disqualification order can also be made under section 2 of the CDDA
following a conviction in criminal proceedings “in connection with the
promotion, formation, management, liquidation or striking off of a
company, with the receivership of a company’s property or with his being
an administrative receiver of a company”.  Criminal proceedings are
instituted by a number of prosecuting authorities in respect of which a
section 2 disqualification order could be made following conviction.  BIS
Criminal Enforcement are one such prosecuting authority.  As far as I am
aware, no costs are claimed in respect of section 2 disqualification
orders, as there will be no  disqualification costs relating to the
obtaining of such an order or they will be minimal.

 

I should inform you that section 6 and section 8 disqualification cases
usually take longer than one year to complete and because of this fact,
there is an overlap in the disqualification figures from year to year. 
Consequently the annual figures in respect of the various categories in
the table below do not refer to the same cases across those categories in
one particular year.  I should also mention that the Insolvency Service
records information in financial rather than calendar years, the financial
year running from 1 April to 31 March.

 

As regards disqualification costs, I should inform you that costs are
recovered in some disqualification cases where a disqualification order
has not been made.  This is because in some cases where disqualification
proceedings have been issued and the substantive matter has not yet been
considered by the court, the defendant subsequently gives a
disqualification undertaking which is accepted by the Secretary of State. 
A disqualification undertaking has the same effect in law as a
disqualification order. In such cases the disqualification proceedings are
discontinued, although costs may be claimed and recovered from the
disqualified person. The costs figures recorded by the Insolvency Service
do not distinguish between cases where a disqualification order has been
made and cases where a post-issue disqualification undertaking has been
accepted.

 

Attached below is a table providing figures in respect of each of the last
5 financial years for disqualification proceedings issued,
disqualification orders made and disqualification undertakings accepted
post-issue.  As regards disqualifications obtained under section 8, the
available figures do not distinguish between disqualification orders and
undertakings.  Please note that the 2012-13 figures have not yet been
audited and are therefore subject to revision. I should mention that
additionally some cases, where disqualification proceedings have been
issued, are withdrawn by the Secretary of State, and a few cases are lost,
that is, the court decides not to make a disqualification order after
considering the evidence presented.

 

 

  Proceedings Issued S6 Orders S6 Post-issue S8
Undertakings disqualifications
 
2008-09 640 207 354 29
2009-10 651 219 347 10
2010-11 621 221 343 15
2011-12 486 180 292 12
2012-13 416 131 254 4

 

 

As regards disqualification costs, the statistics maintained by the
Insolvency Service only record total costs awarded and total costs
recovered in a particular financial year.  Again there is an overlap in
the figures from year to year and consequently the annual figures in
respect of the 2 categories do not refer to the same cases across those
categories in one particular year. Also included in the costs figures
provided below are the petition and winding-up costs and recoveries
relating to companies wound up in the public interest by the Secretary of
State.  These winding-ups are dealt with by the Insolvency Service and the
costs and recoveries relating to this activity are not recorded separately
from disqualification costs and recoveries, however the amounts are not
significant in relation to the total costs and recoveries recorded,as
shown in the table below.  The table provides costs figures in respect of
each of the last 5 financial years, the majority of which amounts refer to
disqualification costs awarded and disqualification costs recovered.

 

     Costs Awarded    Costs Recovered
        £,000        £,000
2008/09       3,022        1,696
2009/10       2,506        1,484
2010/11       2,731        1,415
2011/12       2,269        1,378
2012/13       1,942        1,377

 

 

As regards bankruptcy orders, I can inform you that 20 petitions for a
bankruptcy order were presented in the last 5 years, 1 bankruptcy order
was made in 2009/10 and 4 bankruptcy orders were made in 2010/11. The
costs relating to the bankruptcy orders are not recorded as a separate
category.  A recovery of £885 was made in respect of one of the
bankruptcies, no recoveries were made in respect of the others.

 

Dugald Jaffray

 

Dugald.Jaffray | Investigations and Enforcement Technical Team |
Insolvency Service |

[email address] | 3rd Floor, 4 Abbey Orchard Street,
London SW1P 2HT | T: 020 7637 6585 | F: 020 7637 6230 |
[email address] | www.bis.gov.uk/insolvency

 

 

dangos adrannau a ddyfynnir