An official receiver is a government officer appointed when a company is placed into Compulsory Liquidation by the court. Their role is to take control of the company, deal with its assets and creditors, and establish what led to the company’s failure.
In relation to your company, you’ll only encounter an official receiver in Compulsory Liquidation. They are not involved in voluntary liquidation processes and do not act where directors choose to close a company themselves. Outside of this, they also deal with bankruptcy.
When is an official receiver appointed?
An official receiver is appointed automatically when a winding-up order is made by the court.
This usually follows a petition from a creditor, most commonly HMRC where tax debts remain unpaid and no alternative solution has been agreed.
Once the court makes the order:
- The company must stop trading
- Control passes away from the directors
- The Official Receiver becomes the liquidator by default
What does the official receiver do?
The official receiver has two linked responsibilities. They act as Liquidator in the early stages and also carry out statutory investigations on behalf of the Insolvency Service. Their role includes:
- Securing company assets
- Notifying creditors and employees
- Collecting accounting records and business information
- Reviewing how the company was managed
- Distributing any funds recovered
- Bringing the company to dissolution
The focus of the role is procedural. The official receiver ensures the liquidation follows the legal framework and that creditors are dealt with compliantly.
The investigation into director conduct
As part of every Compulsory Liquidation, the official receiver must submit a director conduct report to see if any of their actions directly caused the insolvency. This review typically involves looking at:
- Company accounts and bank statements
- Tax records and HMRC correspondence
- Payments made to creditors
- Director loan accounts
- Use of government-backed loans, including any outstanding Bounce Back Loan
This is a standard requirement and applies to all insolvent liquidations. It’s not a judgement on the business’ failure.
Further action is only considered where there is clear evidence of misconduct, such as continuing to trade when there was no reasonable prospect of recovery or misuse of company assets.
How long does the official receiver stay involved?
In many cases, the official receiver manages the liquidation from start to finish, particularly where there are limited assets and the case is straightforward.
In larger or more complex cases, the official receiver may appoint a licensed insolvency practitioner to take over as Liquidator. This usually happens where:
- There are assets that need to be realised
- Creditor claims are more complex
- Additional investigation work is required
Once a private liquidator is appointed, responsibility for the case transfers and the official receiver steps back.
Can an official receiver be avoided?
Once a winding-up order is granted, the appointment of the Official Receiver is automatic.
However, Compulsory Liquidation itself is often avoidable. Directors who seek advice early, before court action progresses, may still have access to voluntary options, such as Creditors’ Voluntary Liquidation (CVL), that allow them to choose the process and the practitioner involved.
In a CVL:
- Directors choose when to act
- A licensed insolvency practitioner is often chosen by the shareholders
- The process is planned and orderly
- Creditor pressure is addressed earlier
- Directors retain more influence over timing and communication
This difference between the two liquidation processes is why early advice often gives directors more control over outcomes.
Key takeaways
- An Official Receiver is appointed only in Compulsory Liquidation
- They are a government officer, not a private insolvency practitioner
- Their role covers asset control, creditor communication and investigation
- Director reviews are routine and part of the statutory process
- Control passes from directors once the court makes a winding-up order
- Early advice often preserves more options
Get advice early
If your company is under pressure from creditors or HMRC, getting advice early can make a real difference to how much control you retain over the process.
Speaking with one of our qualified insolvency practitioners doesn’t commit you to any particular route. It gives you a clear view of where you stand, what options are still available and how different outcomes would work in practice. For many directors, that clarity alone helps take the heat out of decision-making.
If you’re unsure what stage you’re at or simply want to understand your position more clearly, a confidential discussion can help you decide the most appropriate next step, with time to think and plan rather than respond under pressure.
