Question to the Department for Business, Innovation, Science and Trade:
To ask the Secretary of State for Business, Innovation, Science and Trade, What mechanisms exist for checking whether claims are assigned appropriately in the process of insolvency of companies.
Where a claim belonging to an insolvent company is assigned to another party, the assignee must be able to establish its legal entitlement to pursue that claim. The validity and effect of an assignment are governed by the applicable law, including, where relevant, section 136 of the Law of Property Act 1925. This provides requirements for the legal assignment of debts and other choses in action, including written assignment and written notice. Where entitlement is disputed, it can ultimately be determined by the courts. Insolvency practitioners are also subject to professional and regulatory requirements when dealing with assets of an insolvent estate.