The powers of investigation afforded to office-holders under s. 236 of the Insolvency Act 1986 are there to enable the court to help an office-holder discover the true facts concerning the affairs of a company, its trading and dealings, to allow the office-holder to complete their function.
These powers are wide reaching and include compelling the provision of information to the office-holder by delivery up of books, papers or other records, answering requests for clarification, providing affidavits or submitting to oral examinations.
Furthermore, these powers can extend to documents which comprise not only the company’s own records but those of third parties insofar as they relate to the affairs or property of the company. However, when it comes to exercising its discretion against third parties, the court must balance the reasonable requirements of the office-holder to obtain the information or documentation sought, against any possible oppression or inconvenience to the third-party.