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Chapter

Cover Company Law

22. Corporate rescue  

This chapter examines the rationale behind the rescue culture and the three principal rescue mechanisms: administration, the company voluntary arrangement, and the moratorium. The UK has sought to adopt a rescue culture, under which the law offers struggling companies access to several rescue mechanisms. The principal rescue mechanism is administration, under which an administrator is appointed to try and fulfil the purpose of administration. An administrator can be appointed by the court, the holder of a qualifying floating charge, or the company or its directors. A moratorium is imposed once a company enters administration, which prevents certain actions from proceeding. Meanwhile, a company voluntary arrangement is a rescue procedure that allows a company to enter into a binding agreement with its creditors. A company voluntary arrangement begins with a proposal being made, and that proposal must then be approved by the company and creditors. A new, free-standing moratorium was introduced in 2020.

Chapter

Cover Company Law Concentrate

9. Corporate rescue and liquidation  

Each Concentrate revision guide is packed with essential information, key cases, revision tips, exam Q&As, and more. Concentrates show you what to expect in a law exam, what examiners are looking for, and how to achieve extra marks. This chapter discusses the various procedures available to companies experiencing financial difficulties that are so severe that the company’s survival is in jeopardy. It focuses on procedures that aim to help struggling companies (such as administration); help creditors recover monies owed (such as receivership); and commence the process of ending the company’s existence and provide for the distribution of its remaining assets (namely winding up).

Chapter

Cover Card & James' Business Law

24. Corporate rescue, insolvency, and dissolution  

This chapter examines the different procedures available to companies that are experiencing financial difficulties. The chapter begins by examining what is a rescue culture, and the extent to which such a culture is present in the UK. The chapter then discusses a series of mechanisms that are designed to rescue a struggling company, namely administration and company voluntary arrangements. Receivership is then discussed, which is not a rescue procedure, but a mechanism designed to allow a creditor to recover monies owed. The chapter then looks at winding up (or liquidation) which is the process whereby the assets of the company are realized and paid out, prior to the company being dissolved. The chapter ends by looking at the rules relating to dissolution and restoration.

Chapter

Cover Company Law Concentrate

9. Corporate rescue and liquidation  

This chapter discusses the various procedures available to companies experiencing financial difficulties that are so severe that the company’s survival is in jeopardy. It focuses on the principal statutory procedures that aim to help struggling companies, namely administration, the company voluntary arrangement, the restructuring plan, and the moratorium. It then moves on to discuss liquidation and the distribution of assets to creditors.