Insolvency practitioner

A person acting, in relation to a company, as its liquidator ( www.practicallaw.com/3-107-6771) , provisional liquidator ( www.practicallaw.com/2-107-7078) , administrator ( www.practicallaw.com/2-107-6366) or administrative receiver ( www.practicallaw.com/4-107-6365) or as a supervisor of a company voluntary arrangement ( www.practicallaw.com/9-107-5957) . Also, a person acting in relation to an individual as his trustee in bankruptcy ( www.practicallaw.com/6-107-7420) . A person is not qualified to act as an insolvency practitioner unless he or she is appropriately authorised under section 390A, Insolvency Act 1986 ( www.practicallaw.com/9-503-9352) .

Since 1 October 2015, an insolvency practitioner may be partially authorised to act in relation to companies or individuals or may be fully authorised to act in relation to companies, individuals and insolvent partnerships (section 390A, Insolvency Act 1986). Accordingly, only a fully authorised insolvency practitioner can take appointments in relation to insolvent partnerships. Further, an insolvency practitioner who is partially authorised to act in relation to companies cannot accept an appointment in respect of a company if he or she is aware that the company is or was a member of a partnership and has outstanding liabilities in relation to the partnership (section 390B, Insolvency Act 1986). The same restriction applies to an insolvency practitioner who is partially authorised to act in relation to an individual who is or was a member of a partnership and has outstanding liabilities in relation to that partnership.

A person who was, prior to 1 October 2015, already authorised to act as an insolvency practitioner will be fully authorised.

In order to qualify, an insolvency practitioner must be an individual who is permitted to act as an insolvency practitioner (for all purposes or in relation only to companies or individuals) by a recognised professional body. In practice, insolvency practitioners are almost always accountants.

For further information, see the Insolvency Service ( www.practicallaw.com/8-106-3813) website.

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