Companies Act 2014 section 511

Independent expert's report

Section 511 sets out the requirement for an independent expert's report to accompany any petition for the appointment of an examiner, and specifies in detail what that report must contain.

• A petition for examinership must be accompanied by a report prepared by the company's statutory auditor or a person qualified to act as examiner — this person is known as the "independent expert".
• The report must include a full statement of the company's financial affairs, covering assets, liabilities (including contingent and prospective liabilities), creditor details, and any securities held by creditors.
• The independent expert must give opinions on whether the company can survive as a going concern, whether a compromise or scheme of arrangement offers a reasonable prospect of survival, and whether continuing the business would be more advantageous to creditors and members than a winding up.
• The report must also cover funding requirements during the protection period, recommendations on paying pre-petition debts, any evidence of substantial unexplained dissipation of company property, and whether the facts warrant further investigation into possible fraudulent or reckless trading.