Creditors and other stakeholders of insolvent companies suffer commercial damage when monies for goods and services are left unpaid.
One of the reasons why the ODCE was established was because of public concern that some of the cases of corporate failure involved the directors acting dishonestly or irresponsibly and because such behaviour, where it occurred, was not being sanctioned in the past.
The task of the Insolvency Unit is to enforce the Director's responsibilities under company law in respect of insolvent companies by,
- Supervising Liquidators in the Proper Discharge of their Duties.
- Assessing Directors' Conduct in Insolvent Liquidation Situations.
- Sanctioning Fraudulent or Abusive Behaviour.
Liquidators of insolvent companies must report to the ODCE on its demise and must also apply to the High Court for the restriction of each of the directors of those companies unless they are relieved of that obligation by the Insolvency Unit.
The ODCE actively invites complaints from creditors, stakeholders and the general public regarding the actions of directors of companies and/or the
performance of liquidators and receivers.
Related Links: