Insolvency Act 1986, section 354

Concealment of property

Part IX Bankruptcy

(1)The bankrupt is guilty of an offence if—

(a)he does not deliver up possession to the official receiver or trustee, or as the official receiver or trustee may direct, of such part of the property comprised in his estate as is in his possession or under his control and possession of which he is required by law so to deliver up,

(b)he conceals any debt due to or from him or conceals any property the value of which is not less than the prescribed amount and possession of which he is required to deliver up to the official receiver or trustee, or

(c)in the 12 months before [F940the making of the bankruptcy application or (as the case may be) the presentation of the bankruptcyF940] petition, or in the initial period, he did anything which would have been an offence under paragraph (b) above if the bankruptcy order had been made immediately before he did it.

Section 352 applies to this offence.

(2)The bankrupt is guilty of an offence if he removes, or in the initial period removed, any property the value of which was not less than the prescribed amount and possession of which he has or would have been required to deliver up to the official receiver or the trustee.

Section 352 applies to this offence.

(3)The bankrupt is guilty of an offence if he without reasonable excuse fails, on being required to do so by the official receiver [F941, the trusteeF941] or the court—

(a)to account for the loss of any substantial part of his property incurred in the 12 months before [F942the making of the bankruptcy application or (as the case may be) the presentation of the bankruptcyF942] petition or in the initial period, or

(b)to give a satisfactory explanation of the manner in which such a loss was incurred.

Cases considering section 354 3

C Plc v P & Anor

[2007] EWCA Civ 493 · 22 May 2007

The disclosure obligation was treated as the statutory basis on which R v Kearns rejected an article 6 challenge. It did not establish a general common law limitation on privilege. (see paras [71]-[72])

Serious Organised Crime Agency v Olden

[2009] EWHC 610 (QB) · 25 March 2009

Section 354 was applied in the alternative to retained money concealed from the trustee in bankruptcy. The court held that such retention would itself constitute criminal conduct, making the retained money recoverable property. (see para [92])

Barnfather v Islington Education Authority & Anor

[2003] EWHC 418 (Admin) · 7 March 2003Defines

The provision is referred to in connection with the no-intention defence to the concealing-a-debt offence. (see para [19]) The provision is referred to as an example of an offence involving a reverse-burden defence and the distinction between procedural guarantees and substantive offence elements. (see para [19])

What each judgment says about section 354 is in the case-law panel in the full Act.

Amendments and notes

3 notes from legislation.gov.uk

Amendments

  1. F940Words in s. 354(1)(c) inserted (6.4.2016) by Enterprise and Regulatory Reform Act 2013 (c. 24), s. 103(3), Sch. 19 para. 44(2); S.I. 2016/191, art. 2 (with art. 3)
  2. F941Words in s. 354(3) inserted (1.4.2004) by 2002 c. 40, ss. 269, 279, Sch. 23 para. 12 (with s. 249(6)); S.I. 2003/2093, art. 2(2), Sch. 2 (subject to arts. 3-8 (as amended by S.I. 2003/2332, art. 2))
  3. F942Words in s. 354(3)(a) inserted (6.4.2016) by Enterprise and Regulatory Reform Act 2013 (c. 24), s. 103(3), Sch. 19 para. 44(3); S.I. 2016/191, art. 2 (with art. 3)