So who claims the assets? Proceeds of Crime Act versus Enterprise Act

Recent legislation has potential to impact the position of both creditors (including Crown creditors) and insolvency practitioners. Penny Cassell of Grant Thornton’s Fraud Insolvency Division (FIND) examines the Proceeds of Crime Act 2002 (POCA) and the Enterprise Act 2002.

Penny Cassell may be may be contacted on tel: +44 (0) 870 991 2459; email: penny.cassell@gtuk.com

The Enterprise Act

The Enterprise Act amended parts of the Insolvency Act 1986 , notably the provisions on appointment of Administrative Receivers by the floating charge holders and the procedures for appointment of Administrators. The original Administration provisions were under-used because the process was both cumbersome and expensive, which meant that Administrative Receiverships became the procedure most commonly used by holders of floating charges.