QUESTIONNAIRE ON INSOLVENCY LAW AND COMPANY LAW UK ANSWERSET

Size: px
Start display at page:

Download "QUESTIONNAIRE ON INSOLVENCY LAW AND COMPANY LAW UK ANSWERSET"

Transcription

1 QUESTIONNAIRE ON INSOLVENCY LAW AND COMPANY LAW Preamble: UK ANSWERSET In the UK, the regime can broadly be summarised as follows: for CVAs, s and receiverships shareholders rights can only be altered in accordance with the Companies Act 2006 and the company s articles of association ( articles ); for administrations and insolvent liquidations shareholder rights are extremely limited or non-existent. Definitions IA86 IR86 CA2006 Insolvency Act 1986 as currently in force Insolvency Rules 1986 as currently in force Companies Act 2006 as currently in force Introductory questions on the insolvency procedures available in the relevant jurisdiction 1. What insolvency procedures are available for distressed or insolvent companies? (IA86 Part I) (IA86 Part II and Schedule B1) Receivership (IA86 Part III) (a private contractual remedy, not considered in this answerset after Q4) (IA86 Part IV) (IA86 Part IV) Members Voluntary Liquidation (solvent liquidation, not considered further in this answerset) ( MVL ) (IA86 Part IV) 2. Are there special insolvency procedures available for financial institutions or other special classes of companies? Yes. Banks and investment banks (as defined) are subject to the Banking Act 2009 and/or the Investment Bank Special Regime 2011 and/or the Banking Reform Act 2013 (as appropriate) together with the applicable subordinate legislation. There are special regimes for electricity and gas suppliers (Energy Act 2004), railway companies (Railways Act 1993 s59 et seq), health companies (Health and Social Care Act

2 2012 Chapters 5 and 6), and public-private partnerships (PPP Admin Order Rules 2007): essentially, key services to the public. 3. Are there any specific legal provisions that apply to debt restructurings achieved without a full formal insolvency process? Debt restructurings without a formal insolvency may be purely contractual or may use a Companies Act of Arrangement (CA2006, part 26) ( ). For these purposes we have defined a CVA as a formal insolvency process. 4. What are the commencement criteria for insolvency procedures? Receivership The company prepares a proposal and then the Court gives permission for the proposal to be posted and meetings (of the classes which are to be d) convened. (s895 et seq, CA2006) The company need not be unable to pay its debts or insolvent within the statutory definitions. (S123 IA86 and S247 IA86 respectively) formal criteria specified in the legislation. Specifically, the company need not be unable to pay its debts or insolvent within the statutory definitions. (S123 IA86 and S247 IA86 respectively) Receivership is a private contractual remedy under a security document. It may be commenced if an event has occurred permitting the appointment of a receiver as specified in the loan and security documents. A court appointed receiver may, as the name suggests, be appointed by the court for the protection, preservation or realisation of assets. The criteria for appointment are within the discretion of the court. Criteria laid down in para11(a) of Schedule B1 IA86: the company is or is likely to become unable to pay its debts S84(1) IA86: broadly, 1 if the period of the company s existence laid down in its constitution has expired; or a condition requiring the company to be wound up (Liquidated) has been met: and in both cases a general meeting of the company has

3 passed a resolution requiring the company to be wound up voluntarily. 2 If the company resolves by special resolution that it be wound up voluntarily S122 IA86. Inability to pay debts is defined in S123 IA86, and those who may petition the court in S124 IA Who can propose a restructuring plan? The company, acting by its directors (s895 CA2006). A may also be proposed from an administration or liquidation, in which case it is the administrator or liquidator who proposes it on behalf of the company. The directors, where the company is not in administration or liquidation; or the administrator or liquidator as appropriate. (S1 IA86) Once the company is in administration, only the administrator can propose a plan, as part of their proposals under para 49 Sch B1 IA86. The liquidator: however this would be very rare, as liquidation is not generally a restructuring procedure. (for a CVA, under S1 IA86) The liquidator: however this would be very rare as liquidation is not generally a restructuring procedure. 6. Please describe whether and to what extent shareholders rights can be affected by a situation of distress/insolvency of a company before and/or irrespective of the opening of a formal insolvency proceeding (e.g. are there any fiduciary duties of the shareholders to approve corrective measures/plans proposed by the board)? S656 CA2006 requires the directors of any public company to call a general meeting of shareholders if the net assets of the company fall below 50% of called-up share capital, to consider whether, and if so what, steps should be taken to deal with the situation.

4 If insolvency is in prospect, then the fiduciary duties of the directors switch from being owed to the shareholders to being owed to the creditors, and the creditors interests must be prioritised over those of the shareholders. Shareholders Rights in Companies Subject to Insolvency Proceedings 7. Are shareholders notified of the initiation of an insolvency process? If notification is individualized, what are the mechanisms used to identify shareholders? It should be noted that companies are not exempt from listing requirements to make market announcements unless and until their shares are suspended or delisted, which would normally follow an insolvency. Therefore, although no shareholder information may be required to be provided as a part of the restructuring or insolvency process, market announcements may be required in any event. Such announcements are not individualised. A listed company would be required to notify its insolvency to the relevant exchange. See also Q6. In a, only those parties whose rights are affected need to be informed and/or consent. Therefore, any proposal for a which affects shareholders rights will require shareholders to be notified individually. Shareholders are identified through the register of members. Shareholders are required to be notified of, provided with and have the opportunity to vote in general meeting on the CVA proposal where the company is not in administration or liquidation. (if it is in administration or liquidation, there is no meeting of shareholders) (S2 and S3 IA86) Shareholders are identified through the register of members. Shareholders are not individually notified. tice is filed with the Registrar of Companies and all business correspondence and the website must contain a statement of the administrator s appointment. (P45 and P46 Sch B1 IA86) Shareholders must be notified of and have the opportunity to vote on the resolution to wind up the company voluntarily. (S84 IA86) Shareholders are identified through the register of members.

5 The petition must be advertised unless the court otherwise directs. (r4.11 IR86) It is not sent to each shareholder. A shareholder has a right to request a copy. (r4.13 IR86) The winding up order of the court must be filed with the company, (r4.21 IR86) the Official Receiver, (r4.21 IR86) the Registrar of Companies, (r4.21 IR86) and advertised (r4.21 IR86). 8. Are shareholders required to file claims in the insolvency proceeding? What are the consequences of not filing a claim? s Shareholders will only be required to file claims as shareholders if the requires it. They may file claims as creditors if that class of creditor is subject to the. Shareholders are not required to file claims qua shareholder. They may file claims as creditors if they have such. Shareholders are not required to file claims qua shareholder. They may file claims as creditors if they have such. Shareholders are not required to file claims qua shareholder. They may file claims as creditors if they have such. Shareholders are not required to file claims qua shareholder. They may file claims as creditors if they have such. 9. Can shareholders continue to trade and transfer shares after the initiation of an insolvency proceeding affecting the company? In principle: yes, in accordance with the company s articles and the provisions of CA2006; though this may depend on the terms of the and there may be a closed period while the process and voting takes place, to ensure that only those members who are actually entitled to vote

6 do so. Yes, where the company is not also in liquidation, in accordance with the articles and the provisions of CA2006. Yes, but the administrator need not keep the shareholders register updated for such transfers. There is no specific provision forbidding it., unless the liquidator has consented (S88 IA86), unless the Court has consented (S127 IA86). There is no provision for the liquidator to consent. 10. Do shareholders have the right to request that a shareholders meeting is held, even if the company is insolvent? (if there are separate reorganisation and liquidation procedures, does this affect the response?) rmal Company law and the articles apply, unless the amends these in which case the amended rules apply. Where the company is not in administration or liquidation the normal rules from the articles and company law will apply.. The administrator may call a company meeting. (R2.49 IR86) right to request but a report to shareholders, which is the same as the report to creditors, must be followed by an annual meeting of shareholders. (r4.49c, r4.49d) right to request but an annual report to shareholders, which is the same as the report to creditors, must be sent if a private sector liquidator is appointed (r4.49b IR86). The Official Receiver must report to creditors and shareholders once (r4.43 IR86).

7 11. Do shareholders have the right to request information in an insolvent company? Do they have information rights as to the progress of a reorganization procedure? Can they exercise that right vis-à-vis the directors of the company if they remain in charge of the company or vis-à-vis the insolvency representative? rmal Company law and the articles apply, unless the amends these in which case the amended rules apply. The description of the, prior to voting, is required by S897 CA2006. Information about the company would normally come from the directors. Where there is an independent Supervisor or Administrator which is not required by law information about the would be requested from the Supervisor/ Administrator. Where the company is not in administration or liquidation the normal rules from the articles and company law will apply. Such information would come from the directors. Information about the CVA would be supplied by the CVA Supervisor. 12. Can shareholders make proposals for nomination of directors, if the directors continue managing the company? Yes, as laid down in the company s articles and general company law., because the directors are no longer in control of the company. Only the administrator can appoint and remove directors (p61 Sch B1 IA86), because the directors are no longer in control of the company., because the directors are no longer in

8 control of the company. 13. If special categories of shares exist whose holders are granted additional governance rights, are these additional rights affected by the opening of an insolvency procedure? (if there are separate reorganisation and liquidation procedures, does this affect the response?) Such rights are no more affected than any other rights of shareholders once insolvency intervenes. In a or CVA (without administration or liquidation) shareholder rights, unless amended by shareholder meetings, remain the same. In other forms of insolvency procedure shareholder rights of governance no longer apply. 14. Can shareholders challenge the decisions of the shareholder meeting if it is still active? Do they retain the possibility of taking action against the acts of the directors? And against the acts of an insolvency representative? Is any authorization by a judicial or administrative body required to do so, or more generally, to exercise corporate rights? (if there are separate reorganisation and liquidation procedures, does this affect the response?) Other than in a or CVA (see below), (i) the shareholder meeting does not remain active; (ii) shareholders may not take action against the directors, that is reserved to the insolvency practitioner and derivative claims are only allowed in special circumstances with the leave of the court (s260 CA2006); (iii) see Q15; (iv) in general, only the court can authorise such acts. In a, the directors will remain in control of the company. Shareholders retain their rights under company law to take actions, (s260 CA2006) although it should be noted that the ability to take derivative actions is rare. If an action against the Supervisor/Administrator is alleged, then the provisions of the will apply although there will always be the ability to apply to Court to take action against them. In a CVA, (i) will normally be covered by ordinary company law, and in addition the CVA may be challenged (s6 IA86). The other matters are as for any other form of insolvency. 15. Do shareholders have the right to call a special investigation of the affairs of the insolvent company? In a, such rights would be as for ordinary company law. In all other cases, if there had been alleged misfeasance/breach of duty by the IP then any party affected would be able to apply to court to correct it. (s6 IA86 to challenge a CVA; p75 Sch B1 IA86 for misfeasance in administrations; S108, s171 and s172 IA86 for CVLs and WUCs.) 16. Does the law provide for the establishment of a shareholders committee ( or several committees, in the case of different share classes)? What are their powers? Who bears the related costs? t in law, but the may allow it.

9 , unless in the CVA proposal... A contributories (equivalent to shareholder: but as defined in s74 IA86) committee can only be established if creditors do not establish a committee and the court consents (R4.154). Only travel expenses would be borne by the estate. Otherwise committee members bear their own costs. The committee has no power and this is very, very rare. 17. Can shareholders voluntarily transfer shares of the company undergoing insolvency proceedings against any provisions in the articles/bylaws restricting transfers of shares?. Shareholder provisions are as in Q9. In a the Articles would continue to apply. 18. Can outstanding shares of the company undergoing insolvency proceedings be assigned to third parties without the consent of the relevant shareholders? If yes, under what conditions? Are existing shareholders entitled to compensation? What other safeguards are provided? (e.g. does the law include a principle according to which the affected shareholders should not receive less than in a liquidation procedure?) As far as I am aware this is only available using the special regimes for financial institutions, in particular the bail-in tool. In such a case compensation would only be available if the affected parties were worse off than they would have been in an insolvency procedure; ss49-62 Banking Act 2009 as amended by the Banking Reform Act Can outstanding shares of the company undergoing insolvency proceedings be cancelled without the consent of the relevant shareholders? If yes, under what conditions? Are existing shareholders entitled to compensation? What other safeguards are provided? (e.g. does the law include a principle according to which the affected shareholders should not receive less than in a liquidation procedure?) Cancellation of shares is not possible under normal insolvency procedures, although in an administration if uncalled capital is available the administrator may call it, so diluting the existing shareholders. (Sch 1 IA86). If, in a or CVA, the proposal required the cancellation of shares, this would require shareholder meetings and consent.

10 In the special regime applicable to financial institutions, it is possible, but not explicit, that outstanding shares may be cancelled under the stringent conditions of the Banking Act 2009 and Banking Reform Act Compensation would follow ss49-62 Banking Act 2009 as amended by the Banking Reform Act Do shareholders of the company undergoing insolvency proceedings have preemption rights over new issues of shares? Are there special conditions for the suppression of pre-emption rights if the company is insolvent? (if there are separate reorganisation and liquidation procedures, does this affect the response?) Pre-emption rights remain the same as in the articles and in company law unless varied by ordinary company law processes. It would be extremely unusual for shares to be issued in a liquidation (CVL or WUC) or administration. For a CVA a shareholder meeting would be required. In the special regimes for financial services companies pre-emption rights, in common with other shareholders rights can be over-ridden. 21. Can shareholders retain a participation in the company that has emerged from an insolvency process (or in the company to which the insolvent company s assets have been transferred) even if the company was insolvent according to a balance-sheet test? (i.e. where the value of its liabilities exceeds the value of its assets) If yes, under what conditions? (if there are separate reorganisation and liquidation procedures, does this affect the response?) Shareholders retain participation in a company which has emerged from insolvency e.g. a completed CVA. It is unusual for a corporate form to survive administration, but any changes to shareholder rights to bring the entity out of administration would require shares to be issued/transferred in accordance with the articles and company law. The corporate form does not survive liquidation. Shareholders in the insolvent company have no automatic right to any participation in a separate company to which the business or assets of the insolvent are sold. 22. Are the ranking of classes of shares and the preferential rights of classes of shares affected (and if yes, to what extent) by the fact that the company is undergoing an insolvency process? (if there are separate reorganisation and liquidation procedures, does this affect the response?). For a, the changes would have to be part of the and thus voted on by the relevant classes of shareholders. There is no automatic change. 23. Can shareholders, in the course of an insolvency procedure, supply goods, services or financial resources to the company? If yes, under what conditions (e.g. judicial authorization)? What would their ranking position be towards other creditors? Yes, in principle. Otherwise than in a or CVA, where the directors will remain in control of the company, the insolvency officeholder would need to approve it. Ranking would be as any other insolvency expense. 24. Can shareholders, in their capacity as counterparties, be under a duty to continue a contractual relationship with the insolvent company during an insolvency procedure?

11 (if there are separate reorganisation and liquidation procedures, does this affect the response?) t qua shareholder. Certain processes allow for key suppliers to be required to continue supply. This applies regardless of their relationship with the insolvent company. Partly-paid shares can be required to be paid up in the same way as any debt due to the company can be required to be paid. (see for example s74 IA86 and s150 and 160 IA86) 25. Can shareholders (or companies of the same group) holding credit claims against the company under insolvency procedure participate in the creditors meeting and vote on the insolvency plan without restrictions? (if there are separate reorganisation and liquidation procedures, does this affect the response?) Associated and/or connected parties may vote their credit claims without restriction as long as they belong to the class which is entitled to vote, but approval of the is subject to a fairness test adjudicated by the Court and so a passed purely on the votes of associated and/or connected parties may not survive the fairness hearing. Associated and/or connected parties may vote their credit claims without restriction, but approval of the CVA requires a simple majority of creditors present and voting who are not associated or connected as well as a 75% majority of all creditors. (r1.19 IR86) Yes. However, approval requires a simple majority of creditors present and voting who are not associated or connected with the insolvent entity. (r2.43 IR86) Yes Yes 26. If shareholders (or companies of the same group) do not hold credit claims against the company under insolvency procedure, must/can they participate in the creditors meeting? If that is the case, what rights or duties do they have in that meeting? (if there are separate reorganisation and liquidation procedures, does this affect the response?).

12 27. Do shareholders in an individual company have information rights as to the filing of insolvency proceedings by the parent or other related companies? The Role of the Shareholders Meeting in Companies Subject to Insolvency Proceedings 28. Does the shareholders meeting continue to exist in insolvency proceedings? (if there are separate reorganisation and liquidation procedures, does this affect the response?) Absent an administration or liquidation, shareholder meetings continue to take place as required by the articles and/or law Absent an administration or liquidation, shareholder meetings continue to take place as required by the articles and/or law, except as detailed in Q10, except as detailed in Q10

13 29. Does the shareholders meetings preserve all of its competences, generally? (if there are separate reorganisation and liquidation procedures, does this affect the response?) Absent an administration or liquidation, shareholder meetings and decisions continue to take place as required by the articles and/or law Absent an administration or liquidation, shareholder meetings and decisions continue to apply as required by the articles and/or law 30. Does the shareholders meeting need to approve the accounts of the distressed/insolvent company? Yes, if the company is not subject to any other insolvency process. Yes, if the company is not subject to any other insolvency process. 31. Does the shareholders meeting have the power to dismiss directors if directors are still in charge of the insolvent company? Can the shareholders meeting request the removal of the insolvency representative? (if there are separate reorganisation and liquidation procedures, does this affect the response?) In a or CVA (absent an administration or liquidation) the powers of the shareholders under the articles and the law continue. Therefore there is the possibility that it may dismiss directors. The shareholders have no power to dismiss directors in any other insolvency procedure but in any event the directors powers cease on the appointment of an administrator or liquidator.

14 A shareholder meeting cannot remove an insolvency representative. This would require an application to court and cause would have to be shown. 32. Is a shareholders meeting authorization required to start an insolvency procedure? (if there are separate reorganisation and liquidation procedures, does this affect the response?), because only the classes of creditor or shareholder affected need to vote. The process is begun by the directors. (s895 CA2006) Yes (s3 and s4 IA86) t necessarily. If the company makes the appointment, then a shareholder resolution may be required. In any other form of administration appointment, it is not. (p22 Sch B1 IA86, but see Re Frontsouth (Witham) Ltd [2011] BCC635) Yes (S84 IA86) 33. Does the shareholders meeting need to approve an insolvency or reorganization plan? Can shareholders, even individually, challenge an insolvency or reorganization plan? If shareholders are affected, they must be allowed to vote on the. All classes voting must approve the by the statutory majorities (75% by value and half in number of those voting) so if shareholders are voting then they must approve the for it to be effective. There is no cram-down provision: creditors or shareholders of a higher priority cannot override a vote of a lower priority class. Shareholders vote on the proposal and approval is by simple majority. If creditors approve it, but shareholders do not, the creditors prevail, but any shareholder may apply to the court to challenge that outcome. (S4A IA86) approval. Challenge only if breach of

15 duty or misfeasance by IP. approval. Challenge only if breach of duty or misfeasance by IP. approval. Challenge only if breach of duty or misfeasance by IP. 34. Is a shareholders meeting decision required to issue new shares of the company undergoing insolvency proceeding? Can a new share issue be decided by the board? Can a new share issue be decided by the insolvency representative? If a capital increase has to take place through the conversion of claims into new shares, does this affect the response? In practice this will only be realistic in the case of a, CVA or administration. For a or CVA, the normal rules of company law will apply together with any restrictions in the articles. The IP does not have the power unilaterally to issue shares, nor can they enforce a conversion of claims into new shares without the share issue being approved in the normal way. (special provisions apply within the regime for financial institutions) In an administration the administrator has the power to call up uncalled capital (Sch1 IA86) but after that the same principles apply as for a CVA. The liquidator has power to call up amounts due from contributories (WUC: r4.202 IR86 and in CVL implicit in Sch 4 IA86) 35. Can an insolvency/reorganization plan affect the structure of the corporate entity (e.g. by merger, spin-off or change of the legal form)? Is a shareholders meeting authorisation required for this? In principle yes, but if a shareholder meeting would be required to affect the entity s legal structure then one would be required in insolvency. In practice, it would be far more likely that the business would be sold to a NewCo which is set up with the required structure already in place. 36. On what conditions can the company carry on business during an insolvency procedure? (if there are separate reorganisation and liquidation procedures, does this affect the response?) Is a shareholders meeting authorization required? As laid down in the approved. Where this is silent, normal company law applies and the company will carry on business. As laid down in the approved proposals, which are voted on by shareholders (see Q33) As the administrator sees fit. Shareholder

16 authorisation is not needed. Trading on is very rare. S87 IA86: the company shall from the commencement of the winding up cease to carry on its business, except so far as may be required for its beneficial winding up. Shareholder authorisation is not needed. Trading on is not permitted. Implicit in s143 IA86: the assets of the company are got in, realised and distributed to the company s creditors 37. In the course of an insolvency procedure, what provisions apply to the sale of specific assets out of the ordinary course of business and to the sale of the entire business operation of the company? Is a shareholders meeting authorization required? (if there are separate reorganisation and liquidation procedures, does this affect the response?) As laid down in the proposals, and if not covered normal company law applies. It appears that the only areas covered in company law relate to transactions with directors. (s190 et seq CA2006) As laid down in the proposals, and if not covered normal company law applies. It appears that the only areas covered in company law relate to transactions with directors. (s190 et seq CA2006) t required (CA2006 s193) t required (CA2006 s193) t required (CA2006 s193) 38. Does the shareholders meeting have any power in relation to a decision of the Board or the insolvency representative to continue or reject any favourable, unfavourable or essential contracts during an insolvency procedure? (if there are separate reorganisation and liquidation procedures, does this affect the response?) power remains with the Board (absent a liquidation or administration) power remains with the Board (absent

17 a liquidation or administration). Decision making rests solely with Administrator. Decision making rests solely with liquidator. Decision making rests solely with liquidator 39. If an insolvency plan can be presented for a whole corporate group, must that plan be approved by the shareholders meetings of each company of the group, including of those that are balance-sheet insolvent? How are the different meetings decisions coordinated? Are there specific safeguards (e.g. any veto power or other remedy) for the minority shareholders of the companies that are not insolvent? A plan must be presented for each company in insolvency separately. Except for a CVA, or potentially in a, there is no requirement for shareholder approval for those companies in insolvency. Companies not in insolvency would need to follow the ordinary requirements of company law and their constitution. 40. If companies belonging to the same group file separate insolvency proceedings, are there specific requirements/mechanisms to provide for co-ordination of those proceedings? Are shareholders meetings of the relevant companies involved in the co-ordination mechanisms, if any? There are no specific requirements to co-ordinate the proceedings under English law. The insolvency officeholders may request procedural co-operation from the court but this is relatively rare. Other Obstacles for Insolvency Proceedings Found in Company Law 41. Please list any other legal provision in company law that, in your opinion or in your experience, may interfere with the insolvency procedure of a company in your jurisdiction. n/a

GLOBAL FORUM ON LAW, JUSTICE AND DEVELOPMENT (GFLJD) COMMUNITY OF PRACTICE QUESTIONNAIRE ON INSOLVENCY LAW AND COMPANY LAW

GLOBAL FORUM ON LAW, JUSTICE AND DEVELOPMENT (GFLJD) COMMUNITY OF PRACTICE QUESTIONNAIRE ON INSOLVENCY LAW AND COMPANY LAW GLOBAL FORUM ON LAW, JUSTICE AND DEVELOPMENT (GFLJD) COMMUNITY OF PRACTICE QUESTIONNAIRE ON INSOLVENCY LAW AND COMPANY LAW This questionnaire addresses the issues affecting the interface between insolvency

More information

GLOBAL FORUM ON LAW, JUSTICE AND DEVELOPMENT (GFLJD) COMMUNITY OF PRACTICE QUESTIONNAIRE ON INSOLVENCY LAW AND COMPANY LAW

GLOBAL FORUM ON LAW, JUSTICE AND DEVELOPMENT (GFLJD) COMMUNITY OF PRACTICE QUESTIONNAIRE ON INSOLVENCY LAW AND COMPANY LAW GLOBAL FORUM ON LAW, JUSTICE AND DEVELOPMENT (GFLJD) COMMUNITY OF PRACTICE QUESTIONNAIRE ON INSOLVENCY LAW AND COMPANY LAW I. Introductory questions on the insolvency procedures available in the relevant

More information

Comparison of Corporate Insolvency Procedures

Comparison of Corporate Insolvency Procedures Comparison of Corporate Insolvency Procedures There are five categories of insolvency procedure for companies in England, Wales and Northern Ireland. These are: Company Voluntary Arrangement (CVA) Administration

More information

Forms of Corporate Insolvency

Forms of Corporate Insolvency Forms of Corporate Insolvency There are five categories of insolvency procedure for companies: Company Voluntary Arrangement; Administration; Administrative Receivership; Creditors Voluntary Liquidation;

More information

Insolvency and Liquidation

Insolvency and Liquidation Insolvency and Liquidation There are many different ways of dealing with company debt. In most cases, an authorised insolvency practitioner will be appointed to manage a company s affairs once insolvency

More information

An Overview of UK Insolvency Procedures and the Considerations for Banks with an Insolvent Customer

An Overview of UK Insolvency Procedures and the Considerations for Banks with an Insolvent Customer An Overview of UK Insolvency Procedures and the Considerations for Banks with an Insolvent Customer November 2011 1 An Overview of UK Insolvency Procedures and the Considerations for Banks with an Insolvent

More information

Financial Restructuring and Transactions IFT Information Note: No. 121. Introduction to Insolvency Processes Schemes of Arrangement and COMI shifting

Financial Restructuring and Transactions IFT Information Note: No. 121. Introduction to Insolvency Processes Schemes of Arrangement and COMI shifting INTRODUCTION This note is intended to act as an introduction to corporate insolvency procedures under the Insolvency Act 1986 (the Act ) (as amended by The Enterprise Act 2002) and otherwise together with

More information

COMPANIES REGISTRY NOTES FOR GUIDANCE ON LIQUIDATION AND INSOLVENCY. DEPARTMENT of ENTERPRISE, TRADE and INVESTMENT CONTENTS INTRODUCTION

COMPANIES REGISTRY NOTES FOR GUIDANCE ON LIQUIDATION AND INSOLVENCY. DEPARTMENT of ENTERPRISE, TRADE and INVESTMENT CONTENTS INTRODUCTION DEPARTMENT of ENTERPRISE, TRADE and INVESTMENT COMPANIES REGISTRY NOTES FOR GUIDANCE ON LIQUIDATION AND INSOLVENCY CONTENTS INTRODUCTION 1. General information 2. Voluntary arrangements 3. Administration

More information

GUIDANCE NOTES FOR DIRECTORS OF COMPANIES WHICH MAY BE MADE SUBJECT TO A FORMAL INSOLVENCY PROCEDURE. These notes are set out as follows: Page

GUIDANCE NOTES FOR DIRECTORS OF COMPANIES WHICH MAY BE MADE SUBJECT TO A FORMAL INSOLVENCY PROCEDURE. These notes are set out as follows: Page GUIDANCE NOTES FOR DIRECTORS OF COMPANIES WHICH MAY BE MADE SUBJECT TO A FORMAL INSOLVENCY PROCEDURE These notes are set out as follows: Page Introduction 1 Insolvency 1 The period up to the start of the

More information

A guide to compulsory liquidations

A guide to compulsory liquidations A guide to compulsory liquidations Introduction A compulsory liquidation is one instituted by the Courts as a result of a petition to the court by an interested party. The appropriate Courts for such actions

More information

An Introduction To Insolvency - Part 1

An Introduction To Insolvency - Part 1 An Introduction To Insolvency - Part 1 An Introduction To Insolvency - Part 1 Introduction A company (or LLP) will be considered to be insolvent if it is unable to pay its debts. A person can be insolvent,

More information

Circular No 16 @ November 2014

Circular No 16 @ November 2014 Circular No 16 @ November 2014 Corporate Insolvency Introduction The new Insolvency Act 2011 provides for the administration, receivership and liquidation of companies, and for the licensing of insolvency

More information

Insolvency and. Business Recovery. Procedures. A Brief Guide. Compiled by Compass Financial Recovery and Insolvency Ltd

Insolvency and. Business Recovery. Procedures. A Brief Guide. Compiled by Compass Financial Recovery and Insolvency Ltd Insolvency and Business Recovery Procedures A Brief Guide Compiled by Compass Financial Recovery and Insolvency Ltd I What is Insolvency? Insolvency is legally defined as: A company is insolvent (unable

More information

Bermuda Winding-Up Procedures

Bermuda Winding-Up Procedures Bermuda Winding-Up Procedures Foreword The following is a summary of the law and procedure under the Companies Act 1981 ("the Act") in so far as it relates to liquidations of companies in Bermuda. The

More information

DIY MVL Workbook. 1800 246 801 svpartners.com.au. A company ceases to exist on deregistration. (s.601ad(1))

DIY MVL Workbook. 1800 246 801 svpartners.com.au. A company ceases to exist on deregistration. (s.601ad(1)) In the course of professional practice, practitioners may encounter instances where a solvent company is no longer required by its directors and members. Examples may include: A company is not operating.

More information

A Creditor s Guide to Voluntary Liquidation in Hong Kong

A Creditor s Guide to Voluntary Liquidation in Hong Kong A Creditor s Guide to Voluntary Liquidation in Hong Kong Creditors Voluntary Liquidation Creditors voluntary liquidation occurs when shareholders put a company into liquidation because it is insolvent,

More information

A BASIC GUIDE TO INSOLVENCY PROCEEDINGS. 1. The Transfer of Undertakings (Protection of Employment) Regulations

A BASIC GUIDE TO INSOLVENCY PROCEEDINGS. 1. The Transfer of Undertakings (Protection of Employment) Regulations A BASIC GUIDE TO INSOLVENCY PROCEEDINGS 1. The Transfer of Undertakings (Protection of Employment) Regulations ( TUPE ) are notoriously difficult to interpret. This is partly because they refer to other

More information

At the EGM, the shareholders decide to put the company into liquidation and vote for the insolvency practitioner that they wish to be appointed.

At the EGM, the shareholders decide to put the company into liquidation and vote for the insolvency practitioner that they wish to be appointed. For a Director My Company is Insolvent What Should I Do? There are a number of options available; Creditors Voluntary Liquidation (CVL) Compulsory Liquidation (Winding Up) Informal wind down or dissolution

More information

Guide on. Winding up / Dissolution. of Companies

Guide on. Winding up / Dissolution. of Companies SEC Guide SERIES SECURITIES AND EXCHANGE COMMISSION OF PAKISTAN Guide on Winding up / Dissolution of Companies NIC Building, Jinnah Avenue, Islamabad, Pakistan Ph. No. : 051-9207091-4, Fax: 051-9204915

More information

CONTENTS PART 1: GENERAL...4 PART 2: COMPANY VOLUNTARY ARRANGEMENTS...5 PART 3: RECEIVERSHIP...8 PART 4: WINDING UP...11 CHAPTER 1 GENERAL...

CONTENTS PART 1: GENERAL...4 PART 2: COMPANY VOLUNTARY ARRANGEMENTS...5 PART 3: RECEIVERSHIP...8 PART 4: WINDING UP...11 CHAPTER 1 GENERAL... INSOLVENCY LAW DIFC LAW No. 3 of 2009 CONTENTS PART 1: GENERAL...4 1. Title...4 2. Legislative Authority...4 3. Application of the Law...4 4. Date of enactment...4 5. Commencement...4 6. Interpretation...4

More information

A voluntary bankruptcy under the BIA commences when a debtor files an assignment in bankruptcy with the Office of the Superintendent of Bankruptcy.

A voluntary bankruptcy under the BIA commences when a debtor files an assignment in bankruptcy with the Office of the Superintendent of Bankruptcy. Bankruptcy and Restructuring 121 BANKRUPTCY AND RESTRUCTURING Under Canadian constitutional law, the federal government has exclusive legislative control over bankruptcy and insolvency matters. Insolvency

More information

Dealing with Debt How to wind up your own company

Dealing with Debt How to wind up your own company Dealing with Debt How to wind up your own company Contents About this booklet 1 General information What is liquidation? What types of liquidation are there? Where can I get advice about liquidation? What

More information

Comparing the corporate insolvency framework: UK, Singapore and India

Comparing the corporate insolvency framework: UK, Singapore and India Comparing the corporate insolvency framework: UK, Singapore and India Anjali Sharma, Rajeswari Sengupta May 15, 2015 Part I What drives optimal insolvency law design What is optimal design? Insolvency

More information

Dealing With Debt. How to wind up your own company

Dealing With Debt. How to wind up your own company how to wind up your own company aug 2008.qxp:how to wind up your own company July 2008.qxd 26/03/2009 07:12 Dealing With Debt How to wind up your own company Page 1 Contents Page About this booklet....................................................3

More information

The Creditors Guide to Insolvency. Kindly Provided by

The Creditors Guide to Insolvency. Kindly Provided by The Creditors Guide to Insolvency Kindly Provided by During the recent worldwide financial instability a number of our customers have found themselves to be a creditor of an insolvent entity, i.e. owed

More information

2010 CORPORATE INSOLVENCY REFORMS

2010 CORPORATE INSOLVENCY REFORMS 2010 CORPORATE INSOLVENCY REFORMS Reversal of the effect of Sons of Gwalia v Margaretic and related issues Section 563A of the Corporations Act subordinates any claims made by a person in their capacity

More information

INSOLVENT TENANTS OPTIONS FOR LANDLORDS

INSOLVENT TENANTS OPTIONS FOR LANDLORDS INSOLVENT TENANTS OPTIONS FOR LANDLORDS Contents 1 Tenant in Liquidation... 2 2 Tenant in Administration... 3 3 Tenant in Receivership... 3 4 Tenant in Company Voluntary Arrangement... 5 5 Tenant in Bankruptcy...

More information

Limited companies. Identifying a limited company. Liability for limited company debts. Information: formal insolvency proceedings.

Limited companies. Identifying a limited company. Liability for limited company debts. Information: formal insolvency proceedings. This fact sheet gives information about private limited companies. We will use the terms limited company and company for the rest of this fact sheet. We explain the responsibilities of limited company

More information

Business Debtline www.businessdebtline.org 0800 0838 018

Business Debtline www.businessdebtline.org 0800 0838 018 BUSINESS DEBTLINE Business Debtline www.businessdebtline.org 0800 0838 018 DEALING WITH DEBTS OF A LIMITED COMPANY FACT SHEET NO. 5 NORTHERN IRELAND This fact sheet gives information about private limited

More information

Winding Up of Companies

Winding Up of Companies Winding Up of Companies 1. Introduction 2. Winding Up & Dissolution 3. Reasons for Winding Up A Company 4. Modes of Winding Up A Company 5. Grounds for Compulsory Winding Up 6. Power of the Court after

More information

Liquidation and insolvency

Liquidation and insolvency Liquidation and insolvency GPO8 July 2013 Companies Act 2006 This guidance is available in alternative formats which include Braille, large print and audio tape. For further details please email our enquiries

More information

Winding Up Part 11 of the Draft Companies Bill. Brendan Cooney Partner

Winding Up Part 11 of the Draft Companies Bill. Brendan Cooney Partner Winding Up Part 11 of the Draft Companies Bill Brendan Cooney Partner Contents of Presentation Part 11: Winding Up 1. Chapter 1 Preliminary and Interpretation 2. Chapter 2 Winding Up by the Court 3. Chapter

More information

Corporate Insolvency in Ireland

Corporate Insolvency in Ireland Corporate Insolvency in Ireland 0 CORPORATE INSOLVENCY IN IRELAND Introduction The collapse of the celtic tiger in Ireland has triggered a significant increase in the number of corporate entities incorporated

More information

Creditors voluntary liquidation

Creditors voluntary liquidation Creditors voluntary liquidation a guide for unsecured creditors Association of Business Recovery Professionals Creditors voluntary liquidation occurs where the shareholders, usually at the directors request,

More information

Limited liability partnership liquidation and insolvency (Scotland)

Limited liability partnership liquidation and insolvency (Scotland) Limited liability partnership liquidation and insolvency (Scotland) GPLLP5s August 2014 Insolvency Act 1986 This guidance is available in alternative formats which include Braille, large print and audio

More information

Assets Anything that belongs to the debtor that may be used to pay his/her debts.

Assets Anything that belongs to the debtor that may be used to pay his/her debts. This is a brief explanation of some of the terms you may come across in debt and insolvency proceedings. Please note that this glossary is for general guidance only. Many of the terms have a specific technical

More information

The local authority insolvency. Jargon buster

The local authority insolvency. Jargon buster The local authority insolvency Jargon buster 1 The world of insolvency can be, at best, confusing for the uninitiated. The various fields of restructuring and recovery are littered with technical terms,

More information

8/26/2008. Chapter 20 Liquidation of companies. What is a winding-up? Winding-up by the court. Process whereby a company is dissolved

8/26/2008. Chapter 20 Liquidation of companies. What is a winding-up? Winding-up by the court. Process whereby a company is dissolved Chapter 20 Liquidation of companies Prepared by Emma Holmes What is a winding-up? Process whereby a company is dissolved Company ceases to be a legal entity Also referred to as a liquidation Legal requirements

More information

Winding Up Petition Guide how to deal with one

Winding Up Petition Guide how to deal with one A Practical Guide for Directors and Shareholders prepared by K2 Business Rescue a trading name of K2 Partners (Rescue) Limited Winding Up Petition Guide how to deal with one 1. INTRODUCTION This Guide

More information

GUIDE TO INSOLVENT LIQUIDATIONS IN BERMUDA

GUIDE TO INSOLVENT LIQUIDATIONS IN BERMUDA GUIDE TO INSOLVENT LIQUIDATIONS IN BERMUDA CONTENTS PREFACE 1 1. Introduction 2 2. Statutory Liquidation Procedures: an Overview 2 3. Compulsory Winding-up 2 4. Creditors Voluntary Winding-up 4 5. Related

More information

Cayman Islands Insolvency Law

Cayman Islands Insolvency Law Cayman Islands Insolvency Law Foreword This memorandum has been prepared for the assistance of those who are considering issues pertaining to the insolvency of companies in the Cayman Islands. It deals

More information

A guide to creditors voluntary liquidations

A guide to creditors voluntary liquidations A guide to creditors voluntary liquidations Introduction A company can be put into liquidation voluntarily, at the instigation of its directors, or compulsorily, by order of the Court. The effect, in either

More information

LEVEL 4 - UNIT 5 CORPORATE INSOLVENCY SUGGESTED ANSWERS JUNE 2015

LEVEL 4 - UNIT 5 CORPORATE INSOLVENCY SUGGESTED ANSWERS JUNE 2015 LEVEL 4 - UNIT 5 CORPORATE INSOLVENCY SUGGESTED ANSWERS JUNE 2015 Note to Candidates and Tutors: The purpose of the suggested answers is to provide students and tutors with guidance as to the key points

More information

Understanding Insolvency

Understanding Insolvency Understanding Insolvency December 2006 Introduction This guide has been prepared by R3 The Association of Business Recovery Professionals. It defines and explains most insolvency procedures and terms,

More information

Glossary of Terms - Hong Kong

Glossary of Terms - Hong Kong Glossary of Terms - Hong Kong Ad Valorem Fee Bankruptcy Ad Val, as it is known, was used to fund the operations of the Official Receiver's Office, but nowadays it goes into the general revenue. It has

More information

LAWCASTLES TECHNICAL PAPERS

LAWCASTLES TECHNICAL PAPERS LAWCASTLES TECHNICAL PAPERS PAPER NO. 1 OF 2006 Statutory Corporate Insolvency Procedures in Tanzania Introduction This paper reviews statutory corporate insolvency procedures in Tanzania. The paper discusses

More information

The no nonsense guide to Insolvent Liquidations

The no nonsense guide to Insolvent Liquidations The no nonsense guide to Insolvent Liquidations [Limited companies and LLPs] Website: www.insolvency-online.co.uk Email: Introduction Welcome to our No Nonsense Guide to Insolvent Liquidations. There is

More information

Liquidating an insolvent Jersey company

Liquidating an insolvent Jersey company Liquidating an insolvent Jersey company DECEMBER 2011 For more briefings visit mourantozannes.com This briefing is only intended to give a summary and general overview of the subject matter. It is not

More information

Liquidators, Receivers and Examiners Their duties and powers

Liquidators, Receivers and Examiners Their duties and powers Liquidators, Receivers and Examiners Their duties and powers A quick guide Introduction We have produced this information booklet to explain the powers, duties and responsibilities of liquidators, receivers

More information

Company Voluntary Arrangements

Company Voluntary Arrangements BRIEFING PAPER Number CPB06944, 10 December 2015 Company Voluntary Arrangements By Lorraine Conway Inside: 1. Introduction 2. CVA procedure 3. The advantages of a CVA 4. The disadvantages of a CVA 5. Past

More information

Glossary of terms. Bond Quasi fidelity insurance needed by a person who acts as an insolvency practitioner.

Glossary of terms. Bond Quasi fidelity insurance needed by a person who acts as an insolvency practitioner. Glossary of terms Administration Order a) A Court order placing the company that is, or is likely to become, unable to pay its debts under the control of an administrator following an application by, inter

More information

GUIDE TO INSOLVENCY IN THE CAYMAN ISLANDS

GUIDE TO INSOLVENCY IN THE CAYMAN ISLANDS GUIDE TO INSOLVENCY IN THE CAYMAN ISLANDS CONTENTS PREFACE 1 1. Introduction 2 2. When is a Company Insolvent under Cayman Islands Law? 2 3. Formal Insolvency Procedures 2 4. Creditors Rights 4 5. Voidable

More information

A guide to Liquidation

A guide to Liquidation A guide to Liquidation Liquidation Regrettably, it is often not possible to sell a business, perhaps because the type of business is no longer viable or because the economic climate makes trading too difficult.

More information

Compulsory liquidation. a guide for unsecured creditors. Association of Business Recovery Professionals

Compulsory liquidation. a guide for unsecured creditors. Association of Business Recovery Professionals Compulsory a guide for unsecured creditors Association of Business Recovery Professionals Compulsory occurs when a company is wound up by an order of the court. A licensed insolvency practitioner has given

More information

A SHAREHOLDER S GUIDE TO LIQUIDATORS FEES IN A SOLVENT LIQUIDATION

A SHAREHOLDER S GUIDE TO LIQUIDATORS FEES IN A SOLVENT LIQUIDATION A SHAREHOLDER S GUIDE TO LIQUIDATORS FEES IN A SOLVENT LIQUIDATION 1 Introduction When a company goes into solvent liquidation the costs of the proceedings may be paid out of its assets. The shareholders,

More information

Understanding Insolvency

Understanding Insolvency Understanding Insolvency October 2008 Introduction This guide has been prepared by R3 The Association of Business Recovery Professionals. It defines and explains most insolvency procedures and terms, but

More information

Restructuring and insolvency in the UK (England & Wales): overview

Restructuring and insolvency in the UK (England & Wales): overview GLOBAL GUIDE 2015/16 RESTRUCTURING AND INSOLVENCY Country Q&A Restructuring and insolvency in the UK (England & Wales): overview James Roome, Tom Bannister and Emma Simmonds Akin Gump LLP global.practicallaw.com/9-501-6812

More information

Restructuring & insolvency law in the DIFC.

Restructuring & insolvency law in the DIFC. July 2011 Restructuring & insolvency law in the DIFC. The Dubai International Financial Centre ("DIFC") The DIFC is a financial free zone in the Emirate of Dubai which was established in 2004. The DIFC

More information

Australia. I. Generally

Australia. I. Generally Australia Texas New York Washington, DC Connecticut Dubai Kazakhstan London I. Generally Australian bankruptcy procedure is regulated by its Corporations Law, which is a single statute that governs almost

More information

Judicial Management, Scheme of Arrangement and Winding Up in Singapore. Copyright Colin Ng & Partners LLP 1

Judicial Management, Scheme of Arrangement and Winding Up in Singapore. Copyright Colin Ng & Partners LLP 1 Judicial Management, Scheme of Arrangement and Winding Up in Singapore Copyright Colin Ng & Partners LLP 1 Introduction Economic crisis many companies hit by cash flow problems and financial difficulties.

More information

Insolvency: a guide for shareholders

Insolvency: a guide for shareholders INFORMATION SHEET 43 Insolvency: a guide for shareholders If a company is in financial difficulty, it can be put under the control of an independent external administrator. The role of the external administrator

More information

slaughter and may Common issues in corporate recovery and insolvency in England and Wales Sarah Paterson, partner and Thomas Vickers, associate

slaughter and may Common issues in corporate recovery and insolvency in England and Wales Sarah Paterson, partner and Thomas Vickers, associate slaughter and may Common issues in corporate recovery and insolvency in England and Wales july 2011 Sarah Paterson, partner and Thomas Vickers, associate 1. Issues Arising When a Company is in Financial

More information

Corporate Insolvency Law In Singapore

Corporate Insolvency Law In Singapore Corporate Insolvency Law In Singapore The Legal Consequences of Corporate Insolvency Insolvency is a term generally used to describe a legal person s state of financial affairs. Specifically insolvency

More information

Insolvency and enforcement procedures in England & Wales

Insolvency and enforcement procedures in England & Wales Insolvency and enforcement procedures in England & Wales Contents Introduction...01 Company Voluntary Arrangement (CVA)...02 Scheme of Arrangement (Scheme)...05 Administration / Pre-pack Administration...08

More information

insolvency group A Guide to Creditor s Voluntary Liquidation Licensed Insolvency Practitioners & Business Recovery Professionals

insolvency group A Guide to Creditor s Voluntary Liquidation Licensed Insolvency Practitioners & Business Recovery Professionals focus insolvency group A Guide to Creditor s Voluntary Liquidation Licensed Insolvency Practitioners & Business Recovery Professionals Call: 0800 157 7330 or 01257 251319 www.focusinsolvencygroup.co.uk

More information

Denmark. Chapter. Gorrissen Federspiel. 1 Issues Arising When a Company is in Financial Difficulties. 2 Formal Procedures

Denmark. Chapter. Gorrissen Federspiel. 1 Issues Arising When a Company is in Financial Difficulties. 2 Formal Procedures Chapter Lars Gr√łngaard Gorrissen Federspiel John Sommer Schmidt 1 Issues Arising When a Company is in Financial Difficulties 1.1 How does a creditor take security over assets in? Security over assets can

More information

APPENDIX B A CREDITORS GUIDE TO ADMINISTRATORS REMUNERATION SCOTLAND

APPENDIX B A CREDITORS GUIDE TO ADMINISTRATORS REMUNERATION SCOTLAND APPENDIX B A CREDITORS GUIDE TO ADMINISTRATORS REMUNERATION SCOTLAND This guide applies to all appointments on or after 6 April 2006. Any creditor requiring guidance on a case where the Insolvency Practitioner

More information

A Procedural Guide to Members Voluntary Liquidation in Hong Kong

A Procedural Guide to Members Voluntary Liquidation in Hong Kong A Procedural Guide to Members Voluntary Liquidation in Hong Kong Members Voluntary Liquidation A Members Voluntary Liquidation is for a solvent company which can pay all its debts in full. The following

More information

GUIDANCE FOR MEMBERS LIQUIDATION COMMITTEES

GUIDANCE FOR MEMBERS LIQUIDATION COMMITTEES GUIDANCE FOR MEMBERS OF LIQUIDATION COMMITTEES CONTENTS INTRODUCTION...1 GENERAL...1.1 LIQUIDATION...1.2 THE LIQUIDATOR...1.3 THE LIQUIDATION COMMITTEE...1.4 THE FUNCTIONS OF THE COMMITTEE...2 CONTROL

More information

Higher National Unit specification. General information. Unit code: H49N 35. Unit purpose. Outcomes. Credit points and level.

Higher National Unit specification. General information. Unit code: H49N 35. Unit purpose. Outcomes. Credit points and level. Higher National Unit specification General information Unit code: H49N 35 Superclass: EC Publication date: June 2013 Source: Scottish Qualifications Authority Version: 01 Unit purpose This Unit is designed

More information

Guide To Compulsory Liquidation Of Companies In The Cayman Islands

Guide To Compulsory Liquidation Of Companies In The Cayman Islands This guide provides general information for creditors and shareholders of insolvent companies. Any queries may be addressed to Chris Johnson of Chris Johnson Associates Ltd. Guide To Compulsory Liquidation

More information

SIP9 Guide to Liquidators Fees (E & W) A CREDITORS GUIDE TO LIQUIDATORS FEES ENGLAND AND WALES

SIP9 Guide to Liquidators Fees (E & W) A CREDITORS GUIDE TO LIQUIDATORS FEES ENGLAND AND WALES SIP9 Guide to Liquidators Fees (E & W) A CREDITORS GUIDE TO LIQUIDATORS FEES ENGLAND AND WALES 1 Introduction 1.1 When a company goes into liquidation the costs of the proceedings are paid out of its assets.

More information

Insolvency & Debt Recovery Glossary of Terms

Insolvency & Debt Recovery Glossary of Terms Insolvency & Debt Recovery Glossary of Terms Administration An insolvency procedure in which an Administrator is appointed to attempt to rescue an insolvent company. It s designed to protect the company

More information

Insolvency: a guide for directors When Where How - What

Insolvency: a guide for directors When Where How - What Insolvency: a guide for directors When Where How - What Contents 1. About this guide... 3 What is insolvency?... 3 What is The Insolvency Service?... 3 What is compulsory liquidation (winding up by the

More information

Top ten questions from creditors of troubled companies

Top ten questions from creditors of troubled companies Top ten questions from creditors of troubled companies A Guest Article by Julian Charles January 2010 What creditors want to know Below are the ten questions most frequently asked by creditors of companies

More information

DEBT. Law guide - Debt, bankruptcy & liquidation

DEBT. Law guide - Debt, bankruptcy & liquidation DEBT Law guide - Debt, bankruptcy & liquidation Contents Bankruptcy... 3 Arrangements with debtor... 6 Alternatives to bankruptcy... 8 Liquidation... 10 Distribution of assets... 11 Alternatives to liquidation...

More information

Collection Manual Liquidation of Companies and other Company Law issues

Collection Manual Liquidation of Companies and other Company Law issues Collection Manual Liquidation of Companies and other Company Law issues Updated June 2014 CONTENTS 1 Introduction...3 2 What is Liquidation?...3 3 When is it appropriate to seek liquidation of a company?...3

More information

Information Leaflet No. 19

Information Leaflet No. 19 Information Leaflet No. 19 SOCIETAS EUROPAEA (SE) INFORMATION LEAFLET NO. 19 /MARCH 2015 1. SOCIETAS EUROPAEA A Societas Europaea (SE) is a European public limited company formed under EU Regulation (Council

More information

Corporate Insolvency in Ireland Dillon Eustace

Corporate Insolvency in Ireland Dillon Eustace Corporate Insolvency in Ireland Dillon Eustace Table of Contents Page 1. Mechanisms of Corporate Insolvency 1 2. Liquidation 1 3. Functions of the Liquidator 2 4. Liquidation and Creditors Rights 2 5.

More information

STANDARD CONDITIONS FOR INDIVIDUAL VOLUNTARY ARRANGEMENTS. Produced by the IVA FORUM

STANDARD CONDITIONS FOR INDIVIDUAL VOLUNTARY ARRANGEMENTS. Produced by the IVA FORUM Protocol Annex 4 STANDARD CONDITIONS FOR INDIVIDUAL VOLUNTARY ARRANGEMENTS Produced by the IVA FORUM Revised November 2013 For use in proposals issued on or after 1 January 2014 TABLE OF CONTENTS FOR STANDARD

More information

Trustees and Liquidators in Bankruptcies and Compulsory Liquidations

Trustees and Liquidators in Bankruptcies and Compulsory Liquidations Trustees and Liquidators in Bankruptcies and Compulsory Liquidations Information on the appointment, functions, powers and payment of trustees and liquidators, and their complaints procedure. Contents

More information

Bermuda is a major offshore business jurisdiction with more than 13,500

Bermuda is a major offshore business jurisdiction with more than 13,500 Bermuda Kehinde AL George, partner Attride-Stirling & Woloniecki Peter CB Mitchell, senior partner PricewaterhouseCoopers Bermuda is a major offshore business jurisdiction with more than 13,500 registered

More information

INSOLVENCY GUIDANCE NOTE STATEMENT OF INSOLVENCY PRACTICE 9 (NI): REMUNERATION OF INSOLVENCY OFFICE HOLDERS NORTHERN IRELAND

INSOLVENCY GUIDANCE NOTE STATEMENT OF INSOLVENCY PRACTICE 9 (NI): REMUNERATION OF INSOLVENCY OFFICE HOLDERS NORTHERN IRELAND INSOLVENCY GUIDANCE NOTE STATEMENT OF INSOLVENCY PRACTICE 9 (NI): REMUNERATION OF INSOLVENCY OFFICE HOLDERS NORTHERN IRELAND Contents Paragraph s Introduction 1-8 The Statutory provisions 9 Administration

More information

Carter Clark Financial Recovery

Carter Clark Financial Recovery Carter Clark Financial Recovery GUIDANCE FOR MEMBERS OF LIQUIDATION COMMITTEES www.carterclark.co.uk GUIDANCE FOR MEMBERS OF LIQUIDATION COMMITTEES CONTENTS INTRODUCTION...1 GENERAL...1.1 LIQUIDATION...1.2

More information

Insolvency (Amendment) Bill

Insolvency (Amendment) Bill Bill [AS INTRODUCED] CONTENTS Provisions relating to communication 1. Attendance at meetings and use of websites 2. References to things in writing Requirements relating to meetings 3. Removal of requirement

More information

Summary Outline of Mississippi Revised LLC Act (House Bill 683)

Summary Outline of Mississippi Revised LLC Act (House Bill 683) Summary Outline of Mississippi Revised LLC Act (House Bill 683) In General The Revised Act is very friendly to small business but also supports freedom of contract principles. Existing LLCs that have written

More information

Company administration

Company administration BRIEFING PAPER Number CBP04915, 12 April 2016 Company administration By Lorraine Conway Inside: 1. Over view 2. The administration procedure 3. Advantages and disadvantages 4. What is a pre-pack? 5. Will

More information

MIA 7/2010 INSOLVENCY. Learning the Essentials of Corporate Liquidation. April 2010

MIA 7/2010 INSOLVENCY. Learning the Essentials of Corporate Liquidation. April 2010 MIA 7/2010 INSOLVENCY Learning the Essentials of Corporate Liquidation Liquidated d Co.. April 2010 Copyright April 2010 by the Malaysian Institute of Accountants ( MIA ). All rights reserved. Permission

More information

ACCOUNTING SOLUTIONS SCO: 209, First Floor, Sector-36/D. Chandigarh (M): 0172-4670390-5017149, 9876149390

ACCOUNTING SOLUTIONS SCO: 209, First Floor, Sector-36/D. Chandigarh (M): 0172-4670390-5017149, 9876149390 Liquidation of Companies Meaning: Liquidation is the legal procedure by which a company comes to an end. The term Liquidation mean The process of law where by a company is wound up to terminate its corporate

More information

Insolvency: a glossary of terms

Insolvency: a glossary of terms Insolvency: a glossary of terms This is a brief explanation of some of the terms you may come across in company insolvency proceedings. Please note that this glossary is for general guidance only. Many

More information

INDIA BANKRUPTCY LAW REFORM

INDIA BANKRUPTCY LAW REFORM I INDIA BANKRUPTCY LAW REFORM Clive Barnard: +44 20 7466 2282 - Clive.Barnard@hsf.com Kevin Pullen: +44 20 7466 2976 Kevin.Pullen@hsf.com John Whiteoak: +44 20 7466 2010 John.Whiteoak@hsf.com Soumya Rao:

More information

DIFC Insolvency Regulations (IR)

DIFC Insolvency Regulations (IR) DIFC Insolvency Regulations (IR) 74085-00002 BK:9905372.1 1 1 October 2008 Contents The contents of this module are divided into the following Chapters, Sections and Annexes. 1. Introduction... 5 1.1 Application

More information

A CREDITORS GUIDE TO LIQUIDATORS FEES

A CREDITORS GUIDE TO LIQUIDATORS FEES A CREDITORS GUIDE TO LIQUIDATORS FEES ENGLAND AND WALES 1 Introduction 1.1 When a company goes into liquidation the costs of the proceedings are paid out of its assets. The creditors, who hope to recover

More information

Insolvency: a guide for directors When Where How - What

Insolvency: a guide for directors When Where How - What Insolvency: a guide for directors When Where How - What Contents 1. About this guide... 3 What is insolvency?... 3 What is The Insolvency Service?... 3 What is compulsory liquidation (winding up by the

More information

INTERIM STATEMENT OF INSOLVENCY PRACTICE 9 REMUNERATION OF INSOLVENCY OFFICE HOLDERS (ENGLAND AND WALES)

INTERIM STATEMENT OF INSOLVENCY PRACTICE 9 REMUNERATION OF INSOLVENCY OFFICE HOLDERS (ENGLAND AND WALES) INTERIM STATEMENT OF INSOLVENCY PRACTICE 9 REMUNERATION OF INSOLVENCY OFFICE HOLDERS (ENGLAND AND WALES) You will be aware that substantial amendments are being made to the Insolvency Rules 1986, with

More information

Crown Holdings (London) Limited (In Liquidation) ( the Company ) Notification to Creditors of a Vacancy on the Liquidation Committee 3 May 2013

Crown Holdings (London) Limited (In Liquidation) ( the Company ) Notification to Creditors of a Vacancy on the Liquidation Committee 3 May 2013 Crown Holdings (London) Limited (In Liquidation) ( the Company ) Notification to Creditors of a Vacancy on the Liquidation Committee 3 May 2013 Following the appointment of Joint Administrators on 4 October

More information

Dealing with financial problems in your business - a guide for directors

Dealing with financial problems in your business - a guide for directors Dealing with financial problems in your business - a guide for directors Introduction Despite a nationwide fall in the number of corporate failures, for many businesses, insolvency remains a real and pressing

More information

ACQUISITION OF ASSETS OF INSOLVENT COMPANIES BY DIRECTORS

ACQUISITION OF ASSETS OF INSOLVENT COMPANIES BY DIRECTORS STATEMENT OF INSOLVENCY PRACTICE 13 (SCOTLAND) ACQUISITION OF ASSETS OF INSOLVENT COMPANIES BY DIRECTORS 1. INTRODUCTION 1.1. This statement of Insolvency Practice is to be read in conjunction with the

More information

Statement of Insolvency Practice 13 (Scotland)

Statement of Insolvency Practice 13 (Scotland) Statement of Insolvency Practice 13 (Scotland) Acquisition of assets of insolvent companies by directors 1. Introduction 1.1 This Statement of Insolvency Practice is to be read in conjunction with the

More information

The IA 86 was amended by the Insolvency Act 2000 (IA 2000) which came fully into force in January 2003. The amendments were relatively minor.

The IA 86 was amended by the Insolvency Act 2000 (IA 2000) which came fully into force in January 2003. The amendments were relatively minor. Insolvency Insolvency, which in general terms means an inability by a company or individual to pay debts, is relevant to many SFO investigations and prosecutions. This section provides: an outline of different

More information