(a) In relation to each type of insolvency procedure available in the legal system of this economy, what powers are given to, or duties imposed upon, each type of administrator to investigate, discover and report to a Court or to regulatory authorities of the government any breaches of the law by former management of the corporate debtor?

 

A liquidator appointed by the court has an obligation to make a preliminary report to the court and to the Official Receiver under the Companies Act. He may also make a further report alleging fraud.

(b) What methods are available to each type of administrator to exercise such powers or discharge such duties? (for example examinations of directors, powers to inspect books and records, obligations to report to government authorities.)

 

In order to enable the judicial manager to carry out his duties, the directors of the company and the secretary must submit a statement of affairs to him within 21 days of receiving ntoice of the judicial management order. The judicial manager may require verification of the statement of affairs by former officers of the company, the company's employees and promoters of the company (if the company was formed within a year prior to the making of the judicial management order). Officers (including former officers), employees and promoters of the company are obliged to give the judicial manager such information as he may reasonably require.

Similarly, in order to enable a liquidator to obtain an idea of the company's position, there are several provisions in the Companies Act that allow examination of persons in a position to provide such information. Where the liquidator has reported that in his opinion, a fraud has been committed or some material fact has been concealed or that some officer has failed to act honestly or diligently or has been guilty of impropriety or recklessness, the court may order the public examination of that person or officer. The liquidator may take part in the examination either personally or by a solicitor.