Company Voluntary Arrangements and Administrations

Save this PDF as:
 WORD  PNG  TXT  JPG

Size: px
Start display at page:

Download "Company Voluntary Arrangements and Administrations"

Transcription

1 Company Voluntary Arrangements and Administrations Second Edition Geoffrey M Weisgard, Michael Griffiths and Louis Doyle I] JORDANS

2 CONTENTS Preface Table of Cases Table of Statutes Table of Statutory Instruments Table of Abbreviations v xiii xxvii xxxiii xxxvii Chapter 1 Introduction 1 Introduction and background 1 The nature of a CVA 2 A deal between a company and its creditors 2 A composition or scheme of arrangement 4 The CVA as a contract and as a trust 5 A minimum return to creditors 5 Proposal by persons other than the directors 6 Sources of information 6 Lack of popularity, 7 Precursors to the modern CVA 7 Trends in relation to CVAs 8 Reasons for the CVA's lack of popularity. 9 Lack of popularity amongst insolvency practitioners 9 Acceptability of 'phoenix' companies 9 Lack of awareness amongst company directors 10 Attitude of the tax authorities 11 Lack of moratorium 12 The administration procedure - 12 Attitude of regulators 12 The moratorium 13 Alternative methods of corporate rescue 15 The rescue culture 15 Arrangement under the Companies Act 2006, ss The turn-around procedure 15 Receivership 16 Administration 17 The voluntary arrangement procedure: summary 18 Table 1.1: Summary of the CVA procedure 19 Qualifications of the supervisor 23 Management of a company in voluntary arrangement 24

3 viii Company Voluntary Arrangements and Administrations The provision of funding 26 Involvement of the official receiver 29 Involvement of the court 29 Involvement of the members 31 Chapter 2 The Procedure 33 Initial meetings with the directors 33 The proposal and statement of affairs 36 The directors' meeting 37 The moratorium and its effects 38 Meetings of members and creditors 48 Implementation 51 Default 52 Chapter 3 The Nominee and His Report 53 The role of the nominee 53 The nominee's report 55 The nominee as expert witness 58 Chapter 4 Costs 61 Introduction 61 The Ferris Report 63 Further guidance 65 Practice Statement on Remuneration 66 Disbursements 68 Chapter 5 The Proposal 69 Generally 69 Background and history 71 Funding 71 Assets 71 Liabilities 74 Payments into the arrangement and duration 75 Breach or non compliance 76 Costs 76 Dividends 76 Co-operation 77 Guarantees, credit and other matters 77 The supervisor, his duties and powers 78 Voidable transactions and offences 79 Chapter 6 Creditors 81 Introduction 81

4 Contents ix HM Revenue and Customs (HMRC) 82 The preferential status of certain liabilities 82 Date for calculating liabilities 83 Crown set-off 83 Development of attitude to voluntary arrangements by the Crown 83 Preferential creditors 85 Creditors secured or partly secured by fixed charges 87 Creditors secured by floating charges 94 Ordinary unsecured creditors 96 Creditors whose claims are uncertain 99 Creditors whose claims are payable in the future 106 Creditors claiming set-off 107 Creditors who are connected 108 Employees 111 Guarantors and joint liabilities 114 Overseas creditors 116 Creditors'committees 117 Chapter 7 The Creditors' Meeting 121 General 121 Creditors not given notice of a creditors' meeting 126 The chairman of a creditors' meeting 129 Adjournment of a creditors' meeting 130 Attendance by a director at a creditors' meeting 133 Proxies 135 Modifications 137 Chairman's report and records 140 Challenge of decisions of a creditors' meeting 142 Chapter 8 Implementation and Supervision of the CVA 151 Disclosure 151 Implementation of the proposal 153 The supervisor as trustee and arbitrator 161 The payment of dividends to creditors 162 Regulation and compliance 165 Challenge of directors' actions 167 Variation of the terms of a voluntary arrangement 174 Voluntary arrangement following liquidation 178 Change of supervisor 182 Satisfactory completion of the arrangement 185 Personal conduct of the supervisor 187 Chapter 9 Breach and Failure of a CVA 191 Breach of the voluntary arrangement 191 The liability of the supervisor 194

5 x Company Voluntary Arrangements and Administrations The liability of directors 201 Certificate of termination 203 Effect of default on trust created by a CVA 205 Winding-up petition following default 208 Supervisor subsequently acting as liquidator 210 Administration following a CVA 212 Chapter 10 Taxation 215 Corporation tax 215 Value added tax 217 PAYE income tax 220 Personal liability of company's officers 220 Chapter 11 Partnership Voluntary Arrangements 223 Partnerships generally 223 Limited liability partnerships 225 Partnerships - the moratorium 228 Chapter 12 The Administration Procedure 233 Introduction 233 Unpopularity of old style administrations 233 Contractual nature of receiverships 234 Reform of the administration procedure 234 Pre-packaged administrations 235 Changes to the law 235 What is administration? 236 The purpose in more detail. 237 Administrations and other insolvency procedures 238 Terminology used 239 General duties of the administrator 240 Re Consumer & Industrial Press Ltd 241 The administrator 241 Protection for purchasers from administrators 243 Restrictions against administrations 244 Routes into administration since 15 September Appointment by the court 244 Appointment by the holder of a floating charge 247 Appointment by the company or its directors 249 Moratorium 250 Approval of the administrator's proposals 251 'Pre-packs' 252 Duration of administration 254 Application to limited liability partnerships and partnerships 254 Post-administration disposals of property and assets 255

6 Contents Dealing with specific assets (a) Land Leases The landlord's perspective (b) Chattels Reservation of title (c) Existing contracts (d) Customer deposits (e) Leased assets/assets subject to hire purchase (f) Intangible assets (g) Book debts Other issues (a) TUPE Insolvency (b) Pensions (c) No warranties, etc (d) 'Phoenix companies' - Insolvency Act 1986, s 216 (e) Substantial property transactions involving directors - Companies Act 2006, s 193 (f)vat Statement of Insolvency Practice 16 Practitioners Legal authority for pre-packs Preparatory work Disclosure Appendix 1 Sample Engagement Letter Appendix 2 Sample Proposal (Including Standard Conditions) 281 Appendix 3 Sample Nominee's Report 305 Appendix 4 Sample Chairman's Report 309 Appendix 5 Sample Annual Report 311 Appendix 6 Sample Final Report Following Breach 317 Appendix 7 HMRC Helpsheet 323

7 xii Company Voluntary Arrangements and Administrations Appendix 8 Forms 327 Appendix 9 Statement of Insolvency Practice No Appendix 10 Statement of Insolvency Practice No Appendix 11 Statement of Insolvency Practice No Index 387

Company Voluntary Arrangements. Geoffrey M. Weisgard

Company Voluntary Arrangements. Geoffrey M. Weisgard Company Voluntary Arrangements Geoffrey M. Weisgard J O R D A N S 2003 CONTENTS Préface Table of Cases Table of Statutes Table of Statutory Instruments and Other Materials Table of European Législation

More information

ICAEW CERTIFICATE IN INSOLVENCY SYLLABUS JULY 2013

ICAEW CERTIFICATE IN INSOLVENCY SYLLABUS JULY 2013 ICAEW CERTIFICATE IN INSOLVENCY SYLLABUS JULY 2013 LEARNING OUTCOMES Module aim To ensure that students have a good grounding in the fundamentals of insolvency work to enable them to work effectively in

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

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

Overview of the English law administration procedure and practical guidance for creditors

Overview of the English law administration procedure and practical guidance for creditors Overview of the English law administration procedure and practical guidance for creditors Set out below is an overview of the administration procedure, together with some practical guidance on the steps

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

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

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

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

STATEMENT OF INSOLVENCY PRACTICE 3.2

STATEMENT OF INSOLVENCY PRACTICE 3.2 STATEMENT OF INSOLVENCY PRACTICE 3.2 ENGLAND AND WALES COMPANY VOLUNTARY ARRANGEMENTS Introduction 1. A Company Voluntary Arrangement (CVA) is a statutory contract between a company and its creditors under

More information

Brief guide to Administration

Brief guide to Administration Brief guide to Administration Administration is a rescue procedure for companies that are, or are likely to become, insolvent. It is similar in concept to Chapter 11 proceedings in the United States but

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

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

INSOLVENCY GUIDANCE NOTE STATEMENT OF INSOLVENCY PRACTICE 3 (E & W): VOLUNTARY ARRANGEMENTS- ENGLAND AND WALES

INSOLVENCY GUIDANCE NOTE STATEMENT OF INSOLVENCY PRACTICE 3 (E & W): VOLUNTARY ARRANGEMENTS- ENGLAND AND WALES INSOLVENCY GUIDANCE NOTE STATEMENT OF INSOLVENCY PRACTICE 3 (E & W): VOLUNTARY ARRANGEMENTS- ENGLAND AND WALES Contents Pages 1. Introduction 2 2. Basis of the Arrangements 4 3. Initial Contact with the

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

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 January 25 th 2008 TABLE OF CONTENTS FOR STANDARD CONDITIONS PART I: INTERPRETATION Page 1 Definitions

More information

Glossary of Terms: Insolvency and Restructuring

Glossary of Terms: Insolvency and Restructuring Glossary of Terms: Insolvency and Restructuring Administration Administration is the court supervised process by which a Licensed Insolvency Practitioner called an administrator takes control of an insolvent

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

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

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

STANDARD CONDITIONS FOR INDIVIDUAL VOLUNTARY ARRANGEMENTS. Produced by the IVA FORUM. Revised January 25'h 2008 - - - ~.,;..._.

STANDARD CONDITIONS FOR INDIVIDUAL VOLUNTARY ARRANGEMENTS. Produced by the IVA FORUM. Revised January 25'h 2008 - - - ~.,;..._. STANDARD CONDITIONS FOR INDIVIDUAL VOLUNTARY ARRANGEMENTS Produced by the IVA FORUM Revised January 25'h 2008 - - - ~.,;..._. TABLE OF CONTENTS FORST ANDARD CONDITIONS PART I: INTERPRETATION 1 Definitions

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

Employees Rights on Insolvency of Company

Employees Rights on Insolvency of Company BRIEFING PAPER Number 00651, 31 December 2014 Employees Rights on Insolvency of Company By Doug Pyper and Lorraine Conway Inside: 1. Employment Rights 2. Payments covered by the State 3. Tax on redundancy

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 INSOLVENCY PRACTITIONERS FEES

A CREDITORS GUIDE TO INSOLVENCY PRACTITIONERS FEES A CREDITORS GUIDE TO INSOLVENCY PRACTITIONERS FEES This document contains two (2) sections SECTION A Individual Voluntary Arrangements (IVA s) SECTION B Scottish Protected Trust Deed s (PTD s) SECTION

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

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

GUIDE. Scheme of Arrangement Guidance Notes

GUIDE. Scheme of Arrangement Guidance Notes GUIDE Scheme of Arrangement Guidance tes Cork Gully LLP February 2013 Contents What is a Scheme of Arrangement? 1 Scheme Procedure 2 Advantages of a Scheme 6 Disadvantages of a Scheme 7 Based on a solid

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

STANDARD CONDITIONS FOR INDIVIDUAL VOLUNTARY ARRANGEMENTS

STANDARD CONDITIONS FOR INDIVIDUAL VOLUNTARY ARRANGEMENTS 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

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

As previously stated, we pride ourselves on the quality of work undertaken. would invite creditors to consider the following points:

As previously stated, we pride ourselves on the quality of work undertaken. would invite creditors to consider the following points: DUFF & PHELPS LTD. PROFESSIONAL FEES - SIP 9 Our mission statement is to provide clients with an outstanding service based on technical excellence, effective problem solving and the highest level of client

More information

STATEMENT OF INSOLVENCY PRACTICE 3.2

STATEMENT OF INSOLVENCY PRACTICE 3.2 STATEMENT OF INSOLVENCY PRACTICE 3.2 COMPANY VOLUNTARY ARRANGEMENTS INTRODUCTION 1 A Company Voluntary Arrangement (CVA) is a statutory contract between a company and its creditors under which an insolvency

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

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

A guide to creditors' meetings

A guide to creditors' meetings A guide to creditors' meetings Creditors meetings under the Insolvency Act 1986 Introduction Creditors meetings provided for under the Insolvency Act 1986 (the Act) vary in purpose according to the type

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

PREPARATION OF INSOLVENCY OFFICE HOLDERS RECEIPTS AND PAYMENTS ACCOUNTS

PREPARATION OF INSOLVENCY OFFICE HOLDERS RECEIPTS AND PAYMENTS ACCOUNTS STATEMENT OF INSOLVENCY PRACTICE 7 (SCOTLAND) PREPARATION OF INSOLVENCY OFFICE HOLDERS RECEIPTS AND PAYMENTS ACCOUNTS 1. INTRODUCTION 1.1 This statement of insolvency practice is to be read in conjunction

More information

Dealing with Debt The no nonsense guide to Individual Voluntary Arrangements

Dealing with Debt The no nonsense guide to Individual Voluntary Arrangements Dealing with Debt The no nonsense guide to Individual Voluntary Arrangements [including Partnerships] Website: www.insolvency-online.co.uk Email: Introduction Welcome to our No Nonsense Guide to Individual

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

Companies in administration: an overview. slaughter and may DECEMBER 2011

Companies in administration: an overview. slaughter and may DECEMBER 2011 Companies in administration: an overview slaughter and may DECEMBER 2011 Contents 1. Appointment 01 2. Effect of appointment on management and directors powers 02 3. Role of administrator 03 4. Effect

More information

A Guide for Creditors

A Guide for Creditors A Guide for Creditors Contents 1. About this guide... 3 2. What is The Insolvency Service?... 3 3. What is insolvency?... 3 4. What are the insolvency procedures?... 4 5. Who deals with the insolvency

More information

BRITISH VIRGIN ISLANDS. THE INSOLVENCY ACT, 2003 i. (as amended, 2004) ARRANGEMENT OF SECTIONS PART I - PRELIMINARY PROVISIONS

BRITISH VIRGIN ISLANDS. THE INSOLVENCY ACT, 2003 i. (as amended, 2004) ARRANGEMENT OF SECTIONS PART I - PRELIMINARY PROVISIONS BRITISH VIRGIN ISLANDS THE INSOLVENCY ACT, 2003 i (as amended, 2004) ARRANGEMENT OF SECTIONS PART I - PRELIMINARY PROVISIONS 1. Short title and commencement. 2. Interpretation. 3. Meaning of company. 4.

More information

[Insert graphic] COMPANIES (INSOLVENCY AND RECEIVERSHIP) ACT 2009 (NO. 2 OF 2009)

[Insert graphic] COMPANIES (INSOLVENCY AND RECEIVERSHIP) ACT 2009 (NO. 2 OF 2009) [Insert graphic] COMPANIES (INSOLVENCY AND RECEIVERSHIP) ACT 2009 (NO. 2 OF 2009) 3 [Insert graphic] COMPANIES (INSOLVENCY AND RECEIVERSHIP) ACT 2009 (NO. 2 OF 2009) PASSED by the National Parliament

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

THE INSOLVENCY PRACTITIONERS ASSOCIATION CERTIFICATE OF PROFICIENCY IN PERSONAL INSOLVENCY SYLLABUS SCOTLAND JANUARY 2014 EDITION

THE INSOLVENCY PRACTITIONERS ASSOCIATION CERTIFICATE OF PROFICIENCY IN PERSONAL INSOLVENCY SYLLABUS SCOTLAND JANUARY 2014 EDITION THE INSOLVENCY PRACTITIONERS ASSOCIATION CERTIFICATE OF PROFICIENCY IN PERSONAL INSOLVENCY SYLLABUS SCOTLAND Syllabus Guidance The Certificate of Proficiency in Personal Insolvency (CPPI) is an intermediate

More information

1.1 Analyse the advantages and disadvantages of different business media. 1.2 Outline the tax regimes applying to each of the different business media

1.1 Analyse the advantages and disadvantages of different business media. 1.2 Outline the tax regimes applying to each of the different business media Title Corporate Insolvency Level 4 Credit value 7 Learning outcomes The learner will: 1 Understand the key practical, financial and fiscal implications in choice of business medium Assessment criteria

More information

INSOLVENCY AND CONTRACTS

INSOLVENCY AND CONTRACTS INSOLVENCY AND CONTRACTS In-house Lawyers Group Seminar Joanna Clark DLA Piper Scotland LLP 19 March 2015 What are we talking about? Insolvency basics Effect of insolvency on contracts Post-insolvency

More information

Guide to the derivation of the Insolvency (England and Wales) Rules 2016 (SI 1024/2016)

Guide to the derivation of the Insolvency (England and Wales) Rules 2016 (SI 1024/2016) This table indicates the derivation of provisions in the 2016 Rules. The 2016 Rules broadly derive from the 1986 Rules and forms. However there is rarely an exact match as the structure of the 2016 Rules

More information

Managing Risk in the LGPS. 5 September 2014

Managing Risk in the LGPS. 5 September 2014 Managing Risk in the LGPS 5 September 2014 Benefits of employer covenant checks Reduce the risk of pension liabilities falling on other fund employers Improves overall scheme governance & employer monitoring

More information

Distressed companies. Issues and opportunities. What are the formal insolvency processes and how do they work?

Distressed companies. Issues and opportunities. What are the formal insolvency processes and how do they work? Distressed companies Issues and opportunities The current economic climate creates hazards and opportunities for those involved with or interested in companies in distress. This short booklet will help

More information

STATEMENT OF INSOLVENCY PRACTICE 9 (SCOTLAND) REMUNERATION OF INSOLVENCY OFFICE HOLDERS

STATEMENT OF INSOLVENCY PRACTICE 9 (SCOTLAND) REMUNERATION OF INSOLVENCY OFFICE HOLDERS STATEMENT OF INSOLVENCY PRACTICE 9 (SCOTLAND) REMUNERATION OF INSOLVENCY OFFICE HOLDERS 1 INTRODUCTION 1.1 This Statement of Insolvency Practice (SIP) is one of a series issued to licensed insolvency practitioners

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

STANDARD CONDITIONS FOR INDIVIDUAL VOLUNTARY ARRANGEMENTS. Produced by the. Association of Business Recovery Professionals

STANDARD CONDITIONS FOR INDIVIDUAL VOLUNTARY ARRANGEMENTS. Produced by the. Association of Business Recovery Professionals STANDARD CONDITIONS FOR INDIVIDUAL VOLUNTARY ARRANGEMENTS Produced by the Association of Business Recovery Professionals Version 2 November 2004 TABLE OF CONTENTS FOR STANDARD CONDITIONS 1 INDIVIDUAL VOLUNTARY

More information

An Introduction to English Insolvency Law. slaughter and may. April 2013

An Introduction to English Insolvency Law. slaughter and may. April 2013 An Introduction to English Insolvency Law slaughter and may April 2013 Contents 1. Formal Procedures 01 1.1. Overview 01 1.2. Administration 02 1.3. Company Voluntary Arrangement ( CVA ) 04 1.4. Creditors

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

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

Guidance to the practical implications of the Paymex decision

Guidance to the practical implications of the Paymex decision VAT & Voluntary Arrangements Guidance to the practical implications of the Paymex decision The decision in Paymex Limited v. The Commissioners for Her Majesty s Revenue and Customs [2011] UKFTT 350 (TC)

More information

Brief guide to English Corporate Insolvency Law

Brief guide to English Corporate Insolvency Law Brief guide to English Corporate Insolvency Law The main English Insolvency Procedures. This guide deals with the main insolvency procedures in England and Wales, namely: > Administration, which is primarily

More information

Winding Up (Scotland)

Winding Up (Scotland) Winding Up (Scotland) GBLLP3(s) May 2009 Version 8 This guidance is available in alternative formats which include Braille, large print and audio tape. For further details please see our website www.companieshouse.gov.ukor

More information

In the Matter of Del Stone London Limited And in the Matter of the Insolvency Act and Rules 1986

In the Matter of Del Stone London Limited And in the Matter of the Insolvency Act and Rules 1986 In the Matter of Del Stone London Limited And in the Matter of the Insolvency Act and Rules 1986 Company Number: 04487057 Trading As: Del Stone London Formerly: No previous names Registered Office: C12

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

Remuneration of Insolvency Officeholders Republic of Ireland

Remuneration of Insolvency Officeholders Republic of Ireland STATEMENT OF INSOLVENCY PRACTICE S9B Remuneration of Insolvency Officeholders Republic of Ireland Contents Paragraphs Introduction 1 6 Overview of Statutory Requirements 7 Members Voluntary Liquidations

More information

Insolvency: a glossary of terms

Insolvency: a glossary of terms INFORMATION SHEET 41 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

More information

VIRGIN ISLANDS. INSOLVENCY ACT, 2003 No. 5 of 2003 VIRGIN ISLANDS INSOLVENCY ACT, 2003 ARRANGEMENT OF SECTIONS PRELIMINARY PROVISIONS

VIRGIN ISLANDS. INSOLVENCY ACT, 2003 No. 5 of 2003 VIRGIN ISLANDS INSOLVENCY ACT, 2003 ARRANGEMENT OF SECTIONS PRELIMINARY PROVISIONS VIRGIN ISLANDS INSOLVENCY ACT, 2003 No. 5 of 2003 VIRGIN ISLANDS INSOLVENCY ACT, 2003 ARRANGEMENT OF SECTIONS Section PART I PRELIMINARY PROVISIONS 1. Short title and commencement. 2. Interpretation. 3.

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

Certificate in Banking Law, Practice and Bankruptcy

Certificate in Banking Law, Practice and Bankruptcy Session 01 Friday 15.05.15 MODULE 1 Introduction and Background of Banking Law in Ireland The introductory session will consider the current economic market, recent trends and what the market holds for

More information

立 法 會 Legislative Council

立 法 會 Legislative Council 立 法 會 Legislative Council Paper for the House Committee Meeting on 16 October 2015 Legal Service Division Report on Companies (Winding Up and Miscellaneous Provisions) (Amendment) Bill 2015 LC Paper No.

More information

A Guide for Directors

A Guide for Directors A Guide for Directors Contents 1. About this Guide...3 2. Compulsory liquidation (winding up by the High Court) - the procedure...5 3. Disqualification of unfit directors of insolvent companies 10 4. Criminal

More information

Financial Restructuring and Transactions IFT Information Note: No. 97. Company Voluntary Arrangement

Financial Restructuring and Transactions IFT Information Note: No. 97. Company Voluntary Arrangement Introduction The last twelve months have seen a marked growth in the use of Company Voluntary Arrangements (CVAs) as an increasing number of corporates (including, for the first time, listed companies)

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

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

Contents. Table of Statutes. Table of Secondary Legislation. Table of Cases. Understanding Undefended Debt Claims. Enforcement of Money Judgments

Contents. Table of Statutes. Table of Secondary Legislation. Table of Cases. Understanding Undefended Debt Claims. Enforcement of Money Judgments Contents Table of Statutes Table of Secondary Legislation Table of Cases Chapter 1: Understanding Undefended Debt Claims 1.1 Definition of debt 1.2 Introduction 1.3 Taking instructions 1.4 Tracing debtors

More information

Insolvency (Scotland) Rules 1986 (SI 1986/1915)... 10. 0.1 Citation and commencement... 10 0.3 Application... 12

Insolvency (Scotland) Rules 1986 (SI 1986/1915)... 10. 0.1 Citation and commencement... 10 0.3 Application... 12 Page 1 Insolvency (Scotland) Rules 1986 (SI 1986/1915)... 10 0.1 Citation and commencement... 10 0.3 Application... 12 Part 1Company Voluntary Arrangements... 12 Chapter 1Preliminary... 12 1.1 Scope of

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

Restructuring and insolvency Administration England

Restructuring and insolvency Administration England Restructuring and Insolvency briefing Spring 2012 Restructuring and insolvency Administration England Summary and implications Administration is a statutory rescue procedure for companies that are experiencing

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

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

About insolvency. Information for individuals and companies

About insolvency. Information for individuals and companies About insolvency Information for individuals and companies BUSINESS WITH CONFIDENCE icaew.com/insolvency Contents Introduction 01 What is insolvency? 01 What does an insolvency practitioner do? 02 Who

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

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

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

Company Voluntary Arrangement (CVA)

Company Voluntary Arrangement (CVA) Company Voluntary Arrangement (CVA) What is a Company Voluntary Arrangement? 1. What is a Company Voluntary Arrangement (CVA)? 2. Why should I consider a C.V.A? 3. What to Consider for a C.V.A.to succeed.

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

Receivership: a guide for creditors

Receivership: a guide for creditors INFORMATION SHEET 54 Receivership: a guide for creditors If a company is in financial difficulty, a secured creditor or the court may put the company into receivership. This information sheet provides

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

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

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

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

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

THIRD SUPPLEMENT TO THE GIBRALTAR GAZETTE No. 3,865 of 21st July, 2011

THIRD SUPPLEMENT TO THE GIBRALTAR GAZETTE No. 3,865 of 21st July, 2011 THIRD SUPPLEMENT TO THE GIBRALTAR GAZETTE No. 3,865 of 21st July, 2011 B. 22/11 Clause INSOLVENCY BILL 2011 ARRANGEMENT OF CLAUSES PART 1 PRELIMINARY 1. Title and commencement. 2. Interpretation. 3. Companies

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

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

A CREDITORS GUIDE TO ADMINISTRATORS REMUNERATION SCOTLAND This guide applies to all appointments on or after 6 April 2006. Any creditor requiring

A CREDITORS GUIDE TO ADMINISTRATORS REMUNERATION SCOTLAND This guide applies to all appointments on or after 6 April 2006. Any creditor requiring 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 was

More information

University of Trier English Law Helen Campbell, Lecturer

University of Trier English Law Helen Campbell, Lecturer University of Trier English Law Helen Campbell, Lecturer Company Law Types of Business Associations --sole trader --partnership --company (aka corporation: management is separated from ownership) --limited

More information

The remainder of the changes brought in by the Act will be examinable from (and including) the January 2017 paper onwards.

The remainder of the changes brought in by the Act will be examinable from (and including) the January 2017 paper onwards. Corporate Insolvency Syllabus the Small Business, Enterprise and Employment Act 2015 Academic year 2015-16 The changes brought in May 2015 will be examinable in the January 2016 exam, and those implemented

More information

www.herrington-carmichael.com

www.herrington-carmichael.com This publication is written as a general guide only. It is not intended to contain definitive legal The protection of employment rights in scenarios where businesses are being acquired (asset purchases)

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

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

CAVANAGH KELLY BELFAST OFFICE

CAVANAGH KELLY BELFAST OFFICE CAVANAGH KELLY BELFAST OFFICE Facing up to your financial future is easier when you have the experience, understanding and expertise of highly qualified professionals at your side. Cavanagh Kelly has many

More information