Insolvency Act 1986, section 236

Inquiry into company’s dealings, etc

Part VI Miscellaneous Provisions Applying to Companies Which are Insolvent or in Liquidation

(1)This section applies as does section 234; and it also applies in the case of a company in respect of which a winding-up order has been made by the court in England and Wales as if references to the office-holder included the official receiver, whether or not he is the liquidator.

(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 [F512to the courtF512] 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.

[F513 (3A) An account submitted to the court under subsection (3) must be contained in—

(a)a witness statement verified by a statement of truth (in England and Wales), and

(b)an affidavit (in Scotland).F513]

(4)The following applies in a case where—

(a)a person without reasonable excuse fails to appear before the court when he is summoned to do so under this section, or

(b)there are reasonable grounds for believing that a person has absconded, or is about to abscond, with a view to avoiding his appearance before the court under this section.

(5)The court may, for the purpose of bringing that person and anything in his possession before the court, cause a warrant to be issued to a constable or prescribed officer of the court—

(a)for the arrest of that person, and

(b)for the seizure of any books, papers, records, money or goods in that person’s possession.

(6)The court may authorise a person arrested under such a warrant to be kept in custody, and anything seized under such a warrant to be held, in accordance with the rules, until that person is brought before the court under the warrant or until such other time as the court may order.

Definitions used in section 236 1

the company

2 Section 233B does not apply in relation to a contract for the supply of goods or services to a company (“the company”) where any of paragraphs 3 to 11 applies.

Defined in Sch.4ZZA para.2 · see it in the full Act

Cases considering section 236 71

Official Receiver (Appellant) v. Wadge Rapps & Hunt (a firm) and another and two other actions

[2003] UKHL 49 · 31 July 2003Interprets

Including the official receiver as an applicant whether or not he is liquidator demonstrates that the section is available for investigatory and reporting functions beyond asset collection and distribution. The court’s power to summon persons capable of supplying relevant information may be invoked for a legitimate statutory purpose concerning the company, including obtaining evidence relevant to director disqualification. The subsection identifies company officers among the persons whom the court may summon on an office-holder’s application. The subsection identifies persons known or suspected to possess company property, or supposed to owe the company money, among those whom the court may summon. The broad reference to information concerning the company’s promotion, formation, business, dealings, affairs or property supports a jurisdiction extending beyond asset recovery to investigation of management conduct. The power to require an affidavit or production of records relating to the company is expressed broadly. It may be exercised to obtain disqualification evidence, subject to the court’s discretion and the requirement that the purpose concern the applicant’s statutory functions relating to that company.

PricewaterhouseCoopers v SAAD Investments Company Limited (In Official Liquidation) and another

[2016] UKPC 33 · 17 November 2016Interprets

In the dissent, section 236 was treated as analogous to the Bermudan disclosure power. Lord Clarke considered that the court had jurisdiction to consider reasonable compliance costs and that the issue could be addressed after compliance. (see paras [37]-[39]; [49]) The dissent relied on section 236(2)’s treatment of oral examination and document production together to support jurisdiction to consider expenses incurred by a respondent required to produce documents. (see para [39])

Hickling v Baker

[2007] EWCA Civ 287 · 4 April 2007

The court treated section 236 as the corporate-insolvency equivalent of section 366 and noted that the established confidentiality practice was confined to examination applications. (see paras [52]-[55], [61](vi))

51 more judgments, and what each says about section 236, are in the case-law panel in the full Act.

Amendments and notes

11 notes from legislation.gov.uk

Amendments

  1. F512Words in s. 236(3) substituted (6.4.2010) by The Legislative Reform (Insolvency) (Miscellaneous Provisions) Order 2010 (S.I. 2010/18), art. 5(6)(a)
  2. F513S. 236(3A) inserted (6.4.2010) by The Legislative Reform (Insolvency) (Miscellaneous Provisions) Order 2010 (S.I. 2010/18), art. 5(6)(b)

Modifications

  1. C753Ss. 233-237 applied (with modifications) (31.1.2019) by Technical and Further Education Act 2017 (c. 19), s. 47(2), Sch. 4; S.I. 2018/1161, reg. 3(d)
  2. C754Ss. 233-237 applied (with modifications) (31.1.2019) by Technical and Further Education Act 2017 (c. 19), s. 47(2), Sch. 3; S.I. 2018/1161, reg. 3(c)
  3. C756Ss. 233-237 applied (with modifications) (E.W.) (15.3.2024) by The Water Industry (Special Administration) Regulations 2024 (S.I. 2024/205), regs. 2(2), 5(1) (with reg. 64)
  4. C777S. 236 applied (with modifications) (S.) (6.4.2001) by S.S.I. 2001/128, reg. 4(1), Sch. 2 (as amended (1.10.2009) by S.S.I. 2009/310, reg. 3, Sch. 1 para. 1(c))
  5. C778S. 236 applied (with modifications) (17.2.2009 for certain purposes, otherwise 21.2.2009) by Banking Act 2009 (c. 1), ss. 103, 263(1)(2) (with s. 247); S.I. 2009/296, arts. 2, 3, Sch. para. 2
  6. C779S. 236 applied (with modifications) (17.2.2009 for certain purposes, otherwise 21.2.2009) by Banking Act 2009 (c. 1), ss. 145, 263(1)(2) (with s. 247); S.I. 2009/296, arts. 2, 3, Sch. para. 3
  7. C780S. 236 applied (with modifications) (6.6.2013) by The Collective Investment in Transferable Securities (Contractual Scheme) Regulations 2013 (S.I. 2013/1388), Pt. 3 reg. 1, Sch. 2 paras. 3, 5 Table (with reg. 24)
  8. C781S. 236 applied (with modifications) (8.7.2021) by The Payment and Electronic Money Institution Insolvency Regulations 2021 (S.I. 2021/716), regs. 2, 37 (with reg. 5) (as amended (4.1.2024) by S.I. 2023/1399, regs. 1(2), 4, 11)
  9. C782Ss. 236-237 applied in part (with modifications) (4.1.2024) by S.I. 2021/716, Sch. 1 para. 3 (as amended by The Payment and Electronic Money Institution Insolvency (Amendment) Regulations 2023 (S.I. 2023/1399), regs. 1(2), 20)