Every party to litigation faces pressure of some kind even where the rules are drawn up to favour one party over another.
If the Insolvency Service are to bring Court Proceedings within the times permitted by law they have to conclude their investigation and compile their evidence within a defined period from the date of insolvency of the Company. The Insolvency Service ought to consider all representations made by the former director and their lawyers: this process itself can be time consuming. Where the Insolvency are late in bringing Court Proceedings they will require the permission of the Court to continue.
Usually, the Insolvency Service will indicate what period of disqualification they think is appropriate for a Court to impose at any future contested Court Hearing.
The Insolvency Service is a government department with limited funds at its disposal. It therefore has to consider very carefully the potential impact of bringing Court Proceedings that may turn out to be not entirely successful. In this way the former director can consider which of the various claims that are being made or likely to be made by the Insolvency Service are likely to succeed at Court. Bearing in mind that the loser to Court Proceedings will normally pay the winner’s costs the former director can tailor his/her approach by conceding some issues but defending others: this approach can be made in such a way that maximises the potential for the Insolvency Service to incur large legal fees in the event that they lose on some of those issues.
In summary, to exert maximum pressure on the Insolvency Service:
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