A WARNING FOR ALL DIRECTORS OF RESURRECTED COMPANIES The practice of resurrecting a company from the ashes of an insolvent liquidation which then trades on, run by the same people, is known as “phoenixism.” (Please click below for the full bulletin) Insolvency Bulletin - Volume 4 Issue 1 (November 2022)
AT LAST, A DECISION ON SEQUANA When does a director’s duty to promote the success of a company become fettered by a conflicting duty to consider the interests of that company's creditors? (Please click below for the full bulletin) Insolvency Bulletin - Volume 3 Issue 12 (October 2022)
MITIGATION FOR BREACHING DIRECTORS’ DUTIES UNDER DURESS Section 212(1) Insolvency Act 1986 is the gateway which allows a liquidator to pursue a recovery for creditors where, in the course of a winding up of a company, it appears that a director or someone involved in the formation, promotion or management [...]
GOOD NEWS FOR OFFICE HOLDERS AND ASSIGNEES In August 2014 the director shareholders of PGD Limited (“the Company”) elected to sell their shares. The purchase of those shares was facilitated by funding from the Company. The directors also cleared their overdrawn directors’ loan accounts by utilising the funds they received [...]
AN INTERESTNG DECISION ON POST-PETITION DISPOSITIONS When a company is threatened with compulsory liquidation as a consequence of the presentation of a winding-up petition, it is vital under the pari passu principle that creditors are treated equally and that a company`s assets are not dissipated. (Please click below for the [...]
TUVS, SET-OFFS AND THE GREAT GATSBY AFM (1932) Ltd (“AFM”) was a construction business which entered into compulsory liquidation in 2014. AFM’s joint liquidators discovered that prior to entering into liquidation £361,528 had been paid by AFM to third parties... (Please click below for the full bulletin) Insolvency Bulletin - [...]
CAN A DIRECTOR RELY ON ADVICE GIVEN ON AN EBT’S VALIDITY? Employee Benefit Trusts (“EBTs”) are discretionary trusts, ostensibly set up on behalf of employees as “incentives”. In reality they are tax avoidance schemes... (Please click below for the full bulletin) Insolvency Bulletin - Volume 3 Issue 7 (May 2022)
BANS FOR DIRECTORS WHO ABUSED THE BOUNCE BACK LOAN SCHEME During the COVID-19 pandemic the Government implemented various financial support measures to assist small and medium sized companies which were losing revenue due to restrictions put in place to control the virus. One of those measures was the Bounce Back [...]
PARTY RECOVERS LIABILITY CONTRIBUTIONS IN S.423 IA 1986 PROCEEDINGS Section 1 of the Civil Liability (Contribution) Act 1978 provides the right for any person who is found liable in respect of damage suffered by another person to recover a contribution from others who share the liability (“the 1978 Act”). (Please [...]
15 YEAR DISQUALIFICATION FOR FAKE INSOLVENCY PRACTITIONER Insolvency Practitioners (IPs) are licensed and authorised by a Recognised Professional Body to act in relation to an insolvent individual, partnership or company and are licensed to undertake appointments in all formal insolvency procedures. (Please click below for the full bulletin) Insolvency Bulletin [...]
