The Insolvency Service's Annual Report and Accounts covering the period 1 April 1999 to 31 March 2000 was published on the 21 July 2000.

The report shows a 20% increase in the number of unfit directors disqualified, alongside a 5.9% decrease in the unit cost of investigating bankruptcies and liquidations.

Welcoming the report Competition and Consumer Affairs minister, Kim Howells said:

"I am particularly gratified to see the further step up in action against unfit directors of failed companies, while performance in other operational areas has been maintained. Equally importantly, The Service has approached imaginatively and innovatively the challenges set for it in developing radical proposals for company rescue and bankruptcy reform and under the modernising government agenda. There is a good deal more to do. I am confident The Service's staff will take all this work forward purposely and professionally."

The Minister also welcomed a new offensive against unfit directors with the setting up of a pilot scheme, launched jointly by The Insolvency Service and a multi-disciplinary team of private sector solicitors, counsel, insolvency practitioners and enquiry agents. The Forensic Insolvency Recovery Scheme (FIRS) will pursue recovery of company funds misappropriated by those who have abused limited liability.

The Annual Report describes the work carried out by Official Receivers and their staff in 33 locations in England and Wales and by The Service's Enforcement Units in London, Manchester and Edinburgh.

The Report looks at The Service's role particularly in relation to:

• Administering and investigating the affairs of bankrupts and companies in compulsory liquidations, and reporting criminal offences;
• Taking disqualification proceedings against unfit directors of failed companies; and
• The development of policies that look to changing attitudes to, and encouraging responsible risk taking.

The report also reviews The Service's performance against targets for 1999 - 2000 and details the key targets and indicators which have been identified for 2000 - 2001.

Reports on the reviews undertaken under the Competitiveness White Paper (published in December 1998) and initiatives taken forward under the Modernising Government White Paper (published in March 1999) are also included.

Key Targets and Key Indicators Exceeded Include:

• 26,634 case administrations were completed (target 26,500)
• Only 2.5% of cases were more than 36 months old (target - less than 5%)
• Investigation unit cost was reduced by 5.9%
• 98.3% of report to creditors on assets and liabilities issued within 8 weeks (target - 97%) and 99.7% or reports to creditors on assets and liabilities issued within 12 weeks (target - 98%)
• 97.6% of meetings of creditors targets held within 12 weeks (target - 96%) and 99.7% of meetings held within 4 months (target - 98%); and
• Number of disqualification orders obtained increased from 1,284 in 1998 - 99 to 1,540 in 1999 - 2000.
• 2,410 Income Payments Orders obtained (plan 1,900)

The Disqualification hotline telephone number is 0845 6013546

Copies of this Report and Accounts are available from the Stationery Office Limited.

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