The Scheme: miscellaneous: applications from liquidators and receivers
|CISR18600||Action guide contents|
Where a company goes into receivership, its day-to-day management may remain in the hands of its directors or be taken over by the receiver. Where the receiver takes over the company’s management, and wishes to preserve the company as a going concern, they may enter into new contracts for construction operations on the company’s behalf. Exceptionally, the liquidator of a company may also enter into new contracts.
Payments made to companies in liquidation or receivership may continue to be made on the basis of the company’s existing payment status, either gross or under deduction. Payments to insolvency practitioners for contracts before the date of appointment are covered at CISR18160.
Applications for gross payment status
If a company already in receivership or liquidation submits an application for gross payment status this should be examined on normal lines. In particular, tax obligations arising in the qualifying period must have been discharged, and on time or the compliance test is failed.