Question to the Department for Business, Innovation, Science and Trade:

To ask the Secretary of State for Business, Innovation, Science and Trade, what powers and obligations do administrators have to investigate transactions between connected companies within a property development group where one or more companies subsequently enter administration.

Administrators are regulated Insolvency Practitioners, appointed to manage the company’s affairs, business and property. Their statutory duties include making appropriate enquiries into transactions entered into by the company which includes intercompany transactions. Where transactions meet the relevant legal tests, the administrator may seek to reverse the transaction for the benefit of all creditors.