Company Liquidations

Business, Enterprise and Regulatory Reform written question – answered on 29th January 2008.

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Photo of Austin Mitchell Austin Mitchell Labour, Great Grimsby

To ask the Secretary of State for Business, Enterprise and Regulatory Reform how many administrations and liquidations began over (a) 10 years ago and (b) 15 years ago have not been finalised.

Photo of Pat McFadden Pat McFadden Minister of State (Department for Business, Enterprise and Regulatory Reform) (Employment Relations and Postal Affairs), Member, Labour Party National Executive Committee

Companies House records show that the number of companies which entered into an administration or liquidation process more than 10 years ago and which are still shown as live on the register are:

(a) 4,921 companies where the administration or liquidation process began between 10 and fifteen years ago.

(b) 1,2571 companies where the administration or liquidation process began more than 15 years ago.

In practice, it is likely that the number of insolvency processes which began more than 10 years ago and remain ongoing is significantly lower than this. It would be unusual for an individual process to continue for as long as 10 years. The implication is that, in a significant number of cases, the administrator or insolvency practitioner may not have notified Companies House that a process is complete. Companies House is considering, in discussion with the Insolvency Service, what further steps it could take to clarify how many companies fall into this category. At present, it is not possible to say what the true figure is.

In addition to their obligation to keep the public record up to date, the relevant insolvency office holder is required to give regular updates to creditors and, where appropriate, members of the company.

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