This chapter explains the statutory requirements with respect to the formation of an LLP and explains the process by which an LLP is incorporated. It explains how, as an incorporated body, an LLP acts through its members and other agents, and how their acts and their potential wrongdoing can be attributed in law to the LLP itself. It addresses the concept of limited liability that is consequent to an LLP's incorporation, and identifies the obligations that are imposed on an LLP arising from limited liability, in terms of registration and publicity.
Chapter
11. The Corporate Structure
Chapter
8. Members’ remedies
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 three principal remedies provided by law to members of a company: the derivative claim under Pt 11 of the Companies Act 2006 (CA 2006), the unfair prejudice remedy under Pt 30 of the CA 2006, and the petition for winding up the company under s 122 of the Insolvency Act 1986 (IA 1986).
Chapter
8. Members’ remedies
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 three principal remedies provided by law to members of a company: the derivative claim under Pt 11 of the Companies Act 2006 (CA 2006); the unfair prejudice remedy under Pt 30 of the CA 2006; and the petition for winding up the company under s 122 of the Insolvency Act 1986 (IA 1986).
Chapter
13. Rights and Duties of Membership
This chapter addresses the rights and obligations of membership. It explains what a member's share in the LLP entails, and considers how the share can be assigned or treated as property. It considers the duties that members owe to the LLP and to each other, including both fiduciary duties and those that arise under a common law duty of care. It considers what duties a member may have to outsiders, and also the protections that a member may have in the event of unfair treatment by the LLP.
Book
Brenda Hannigan
Company Law brings clarity and analysis to the ever-changing landscape of this field. The text aims to capture the dynamism of the subject, places the material in context, highlights its relevance and topicality, and guides readers through all the major areas. The book is divided into five distinct parts covering corporate structure (including legal personality, attribution, and constitutional issues), corporate governance (including board composition, directors’ duties, and liabilities), shareholders’ rights and remedies (including membership rights regarding meetings and resolutions, shareholder petitions, and derivative claims), corporate finance (including share and loan capital), and corporate insolvency.
Chapter
18. Remedies for maladministration
This chapter considers the remedies available when maladministration occurs, with emphasis on the existence of the company as a separate person. It examines circumstances where a wrong has been done to the company or to individual members, focusing on the proper claimant principle established in Foss v Harbottle (1843) 2 Hare 461, and the possible action that can be taken against company officers who have committed a wrong. It also explains the causes for which a member can file derivative claims; the right of a member to petition the court for relief under the Companies Act 2006 (CA 2006), part 30 (ss 994 to 999); members’ petition for winding up; the irregularity principle; and when the Secretary of State can intervene in maladministration cases. The chapter cites relevant legislation (Companies Act 1985, Insolvency Act 1986 and CA 2006) and a number of particularly significant court cases.
Chapter
20. Company insolvency and liquidation
This chapter deals with procedures and legislation governing the insolvency and liquidation of a company and who are qualified as insolvency practitioners. It discusses insolvency procedures such as administration, voluntary arrangement, creditors’ voluntary winding up, winding up by the court and the appointment of a provisional liquidator. It considers the effect of insolvency and liquidation procedures on floating charges, court control of insolvency and liquidation procedures, and liability for fraudulent trading and wrongful trading. The legal principles underlying disqualification orders against a company’s directors, the use of an insolvent company’s name, the order of the application of assets in liquidation and the dissolution of a company are also examined.
Chapter
20. Company insolvency and liquidation
This chapter deals with procedures and legislation governing the insolvency and liquidation of a company and who are qualified as insolvency practitioners. It discusses insolvency procedures such as administration, voluntary arrangement, creditors’ voluntary winding up, winding up by the court and the appointment of a provisional liquidator. It considers the effect of insolvency and liquidation procedures on floating charges, court control of insolvency and liquidation procedures, and liability for fraudulent trading and wrongful trading. The legal principles underlying disqualification orders against a company’s directors, the use of an insolvent company’s name, the order of the application of assets in liquidation and the dissolution of a company are also examined.
Chapter
18. Remedies for maladministration
This chapter considers the remedies available when maladministration occurs, with emphasis on the existence of the company as a separate person. It examines circumstances where a wrong has been done to the company or to individual members, focusing on the proper claimant principle established in Foss v Harbottle (1843) 2 Hare 461, and the possible action that can be taken against company officers who have committed a wrong. It also explains the causes for which a member can file derivative claims; the right of a member to petition the court for relief under the Companies Act 2006 (CA 2006), part 30 (ss 994 to 999); members’ petition for winding up; the irregularity principle; and when the Secretary of State can intervene in maladministration cases. The chapter cites relevant legislation (Companies Act 1985, Insolvency Act 1986 and CA 2006) and a number of particularly significant court cases.
Chapter
17. Insolvency and Dissolution
This chapter explains how insolvency law applies to an LLP. It considers the various insolvency processes under the Insolvency Act 1986 that can arise, and the position of members in a winding up, both as potential contributories and also as potential creditors. It addresses investigations into LLPs under the Companies Act 1985, and finally explains how an LLP can be struck from the register and how it can be restored.
