| 1 |
Which part of the DTI investigates complaints about companies? |
Companies
Investigations Branch (CIB) exercises the Secretary of
State’s powers of investigation under the Companies Acts. |
| 2 |
What can they investigate? |
Only
limited companies and Limited Liability Partnerships that have
a business address in Great Britain provided that they have
not been dissolved, or are in compulsory liquidation. |
| 3 |
What if I have a complaint against a sole trader or a
partnership? |
By
law CIB cannot investigate sole traders or partnerships except
Limited Liability Partnerships (which are registered at
Companies House). If you have a complaint about a business
which is not run by a limited company you will need to seek
advice as to what you can do. Your local Trading Standards
Department or Citizens’ Advice Bureau may be able to help. |
| 4 |
What
if the company is in liquidation? |
CIB
will consider complaints against companies which have entered
into formal insolvency proceedings ( administration,
administrative receivership and voluntary liquidation).
However,
CIB is unlikely to investigate where the misconduct alleged
can be dealt with by the Insolvency Practitioner involved, who
has a duty to report to the Secretary of State under the
Company Directors Disqualification Act 1986.
CIB
will not consider a complaint against a company in compulsory
liquidation ( i.e. a winding up order has been made by the
court ) because the Official Receiver has a duty to
investigate such companies. A list of Official Receivers can
be found on the Insolvency Service Website at http://www.insolvency-service.co.uk/officemap.htm. |
| 5 |
What
sort of complaints will CIB investigate? |
Any
complaint that provides good reason for an investigation and
where there is both a public interest in investigating and the
prospect of a useful outcome. Generally there must be
reasonable grounds to suspect serious misconduct, or material
irregularity in a company’s affairs.
Generally
CIB will not investigate where:
¨ There
are civil remedies available to the complainant
¨ The
only issue is non payment of a debt -unless there are
suspicious circumstances
¨ The
issue is internal to the company or its shareholders and there
is no public interest in investigating
¨ The
complaint is about the quality of goods or services ( Trading
Standards are best suited to investigate these)
¨ The
complaint is better dealt with by another regulator e.g. the
Financial Services Authority for complaints against businesses
in the financial services industry. |
| 6 |
Can
I insist on an investigation? |
No,
CIB has a discretion. |
| 7 |
What
can CIB do if it does investigate? |
It
can:
¨ Present
a petition to the court to wind up a company in the public
interest
¨ Apply
to the court to disqualify a director
¨ Prosecute
company officials or refer evidence to other investigators or
prosecutors e.g. the police or the Serious Fraud Office
¨ Refer
information to other bodies to consider disciplinary action
against their members e.g. the Institute of Chartered
Accountants or the Law Society |
| 8 |
If
CIB investigates will they tell me what they find out ? |
No.
Investigations are confidential and we are not allowed to tell
you what we have found out. |
| 9 |
Will
I ever know what has happened as a result of an
investigation? |
You
might if CIB take action that becomes public knowledge e.g. a
winding up, prosecution or disqualification but only when the
matter is dealt with in open court. |
| 10 |
Will
I have to pay for an investigation? |
No. |
| 11 |
If
a company is trading whilst it is insolvent will CIB
investigate? |
Trading
by a company whilst it is insolvent is not in itself grounds
to justify an investigation. |
| 12 |
Will
CIB investigate where it appears that a disqualified
director is acting in the management of a company? |
This
is normally a matter for the Insolvency Service, and therefore
you should approach them first. |
| 13 |
Will
CIB investigate ‘Phoenix Companies’? |
We
treat each allegation on its individual merits. ’Phoenix’
trading is not necessarily unlawful, and therefore CIB will
not automatically investigate allegations of this nature. |
| 14 |
Will
CIB help me to recover money I am owed by a company? |
No.
CIB has no power to recover debts on your behalf, and we are
prevented by law from providing information to creditors of a
company. Any action we do take will be in the wider public
interest, and must take into account the interests of all
those involved, not just individual creditors. |
