Companies Act 2014 section 558D

Process adviser to prepare report

Section 558D sets out the detailed report that a process adviser must prepare and give to the directors of an eligible small or micro company once the adviser has concluded that the company has a reasonable prospect of surviving as a going concern.

• Once the process adviser determines there is a reasonable prospect of survival, they must prepare a comprehensive report and submit it to the company's directors.
• The report must include a full statement of affairs showing assets, liabilities, creditors, securities held by creditors, and the dates those securities were given.
• The adviser must give opinions on whether any asset/liability shortfall is satisfactorily explained, whether a rescue plan offers a reasonable prospect of survival, and whether continuing the business would be more advantageous than a winding up.
• The report must also cover funding requirements during the rescue period, recommendations on pre-appointment liabilities to be paid, a recommendation on which court should handle proceedings, and may include a draft rescue plan.