In force2020 Revised Edition

Contents

Insolvency, Restructuring and Dissolution Act 2018 · 2020 Revised Edition · Part 8 · Winding Up

197. Unclaimed assets to be paid to Official Receiver

(1)

Where a liquidator has in the liquidator’s hands or under the liquidator’s control —

(a)

any unclaimed dividend or other moneys that have remained unclaimed for more than 6 months after the date on which the dividend or other moneys became payable; or

(b)

after making final distribution, any unclaimed or undistributed moneys arising from the property of the company,and the moneys remain unclaimed after the expiration of 30 days after the date the notice mentioned in subsection (2) is given, the liquidator must immediately pay those moneys to the Official Receiver to be placed to the credit of the Companies Liquidation Account, and is entitled to the prescribed certificate of receipt for the moneys so paid, and that certificate is an effectual discharge to the liquidator in respect of the moneys so paid.

(2)

A liquidator who has in the liquidator’s hands or under the liquidator’s control any moneys mentioned in subsection (1) must give notice, of the intended payment to the Official Receiver of those moneys if those moneys remain unclaimed after the expiration of 30 days after the date the notice is given, to the person entitled to those moneys by —

(a)

sending a copy of the notice to that person at that person’s last known address; and

(b)

if there is reason to believe that the copy of the notice mentioned in paragraph (a) may not be effective in bringing the intended payment to that person’s attention, an advertisement published in at least one English local daily newspaper.

(3)

The Court may, at any time on the application of the Official Receiver —

(a)

order any liquidator to submit to the Court an account, verified by affidavit, of any unclaimed or undistributed funds, dividends or other moneys in the liquidator’s hands or under the liquidator’s control;

(b)

direct an audit of those moneys; and

(c)

direct the liquidator to pay those moneys to the Official Receiver to be placed to the credit of the Companies Liquidation Account.

(4)

The interest arising from the investment of the moneys standing to the credit of the Companies Liquidation Account must be paid into the Consolidated Fund.

(5)

For the purposes of this section —

(a)

the Court may exercise all the powers conferred by this Act with respect to the discovery and realisation of the property of the company; and

(b)

the provisions of this Act with respect to the discovery and realisation of the property of the company, with such adaptations as are prescribed, apply to proceedings under this section.

(6)

This section does not, except as expressly declared in this Act, deprive any person of any other right or remedy to which the person is entitled against the liquidator or any other person.

(7)

If any claimant makes any demand for any money placed to the credit of the Companies Liquidation Account, the Official Receiver, upon being satisfied that the claimant is the owner of the money —

(a)

must authorise payment of the money to be made to the claimant out of that Account; or

(b)

if the money has been paid into the Consolidated Fund, may authorise payment of a like amount to be made to the claimant out of moneys made available by Parliament for the purpose.

(8)

Any person dissatisfied with the decision of the Official Receiver in respect of a claim made under subsection (7) may appeal to the Court, which may confirm, disallow or vary the decision.

(9)

Where any unclaimed moneys paid to any claimant are afterwards claimed by any other person, that other person is not entitled to any payment out of the Companies Liquidation Account or out of the Consolidated Fund, but may have recourse against the claimant to whom the unclaimed moneys have been paid.

(10)

Any unclaimed moneys paid to the credit of the Companies Liquidation Account, to the extent to which the unclaimed moneys have not been under this section paid out of that Account, must, on the expiration of 7 years after the date of the payment of the moneys to the credit of that Account, be paid into the Consolidated Fund.