It is amazing how we won’t see a particular issue for months on end and then we suddenly see it on a number of visits in quick succession. We have recently seen a number of cases where resolutions were taken at final meetings authorising the liquidator to destroy the company’s accounting records. Such a resolution is unnecessary as the liquidator has the power to destroy them 12 months after dissolution under the Insolvency Regulations 1994, although you should as a matter of routine be seeking clearance from HMRC – the relevant Inspector of Taxes, VAT insolvency unit in Bootle, and the Inland Revenue’s claims handling unit at Longbenton – as part of your closing procedures prior to the final meetings.
Similarly, you should not be taking resolutions relating to the destruction of your own case records at the final meetings. The retention requirements for these are contained in the insolvency legislation, principally the Insolvency Practitioner Regulations, and since they cannot be changed by a resolution taken at the final meetings then a resolution should not be sought.
In both instances there is nothing to stop you from telling the creditors about the timescales for destruction in your final report, should you so wish, although there is no requirement to do so.
