This chapter deals with insolvency and the principles of insolvency law. It begins with a brief historical background. It then considers the basic objectives of insolvency law as it relates to the bankruptcy of individuals and to corporate insolvency. In particular, it highlights the importance of the pari passu principle to ensure that all creditors participate on an equal footing in the estate in question. The chapter goes on to discuss the various definitions of insolvency before concluding with an overview of insolvency procedures for both individual insolvency and corporate insolvency.
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This chapter deals with the procedures available when a company is insolvent or facing financial difficulties. It also considers the ways in which insolvent partnerships can be subject to the same procedures as companies. The law relating to these matters is principally contained in the Insolvency Act 1986 together with the Insolvency Rules 1986, as amended by the Insolvency Act 2000 and the Enterprise Act 2002. The insolvency legislation provides four procedures for companies in financial difficulties: administration, voluntary arrangement, receivership, and liquidation.
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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.
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This chapter deals with the procedures available when a company is insolvent or facing financial difficulties. It also considers the ways in which insolvent partnerships can be subject to the same procedures as companies. The law relating to these matters is principally contained in the Insolvency Act 1986 together with the Insolvency Rules 1986, as amended by the Insolvency Act 2000 and the Enterprise Act 2002. The insolvency legislation provides four procedures for companies in financial difficulties: administration, voluntary arrangement, receivership, and liquidation.
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Companies experiencing financial difficulty have various options to effect either the timely rescue of viable commercial enterprises or the orderly and competent management of affairs before ceasing operations. This chapter focuses on liquidations caused by insolvency. Topics include: company voluntary arrangements; administration; receivership and administrative receivership; distribution of assets subject to the receivership; liquidation or winding up; investigating and reporting the affairs of the company; dissolution of the company; and restoration to the register.
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Robert M. Abbey and Mark B. Richards
This chapter first considers matters that must be attended to before an exchange of contracts when acting for the buyer and when acting for the seller. It then discusses implementing the exchange of contracts; actions taken after exchange; and death or insolvency of contracting parties between exchange and completion.
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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).
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This chapter discusses rescue and insolvency procedures. Companies experiencing financial difficulty have various options to effect either the timely rescue of viable commercial enterprises or the orderly and competent management of affairs before ceasing operations. This chapter considers: the Insolvency Act 1986 Pt 1A moratorium; company voluntary arrangements; administration; receivership and administrative receivership; distribution of assets subject to the receivership; liquidation or winding up; investigating and reporting the affairs of the company; dissolution of the company; and restoration to the register.
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This chapter looks at the legal framework that regulated takeovers, as well as discussing corporate reconstruction via a scheme of arrangement and a scheme of reconstruction. A reconstruction under s 110 of the Insolvency Act 1986 involves all or part of a company's business or property being transferred or sold to one or more new companies, and the original company is then voluntarily wound up. A s 110 reconstruction binds all members and creditors who are affected by it, even those who did not vote for it. Meanwhile, a scheme of arrangement, under Pt 26 of the Companies Act 2006 (CA 2006), is a compromise or arrangement between a company and its creditors, or any class of them; or its members, or any class of them. Takeovers are regulated by the Panel on Takeovers and Mergers, who are responsible for drafting and updating the City Code on Takeovers and Mergers.
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Essential Cases: Equity & Trusts provides a bridge between course textbooks and key case judgments. This case document summarizes the facts and decision in Barclays Bank Ltd v Quistclose Investments Ltd [1970] AC 567, House of Lords. The document also includes supporting commentary from author Derek Whayman.
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Essential Cases: Equity & Trusts provides a bridge between course textbooks and key case judgments. This case document summarizes the facts and decision in Barclays Bank Ltd v Quistclose Investments Ltd [1970] AC 567, House of Lords. The document also includes supporting commentary from author Derek Whayman.
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Essential Cases: Equity & Trusts provides a bridge between course textbooks and key case judgments. This case document summarizes the facts and decision in Barclays Bank Ltd v Quistclose Investments Ltd [1970] AC 567, House of Lords. The document also includes supporting commentary from author Derek Whayman.
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This chapter sets out in outline the impact of insolvency on partnerships, the insolvency being that of the firm, one or more of the partners or any combination of those possibilities. It deals in order with the winding up of an insolvent partnership only, the winding up of the insolvent firm with the concurrent bankruptcies of the partners, joint bankruptcy petitions against the partners and separate bankruptcy petitions against the partners. It distinguishes between the rights of partnership and individual creditors and deals with the disqualification of an insolvent partner from the management of a company. The chapter then details the application of the corporate insolvency procedures of voluntary arrangements and administration orders to partnerships.
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Titles in the Core Text series take the reader straight to the heart of the subject, providing focused, concise, and reliable guides for students at all levels. This chapter deals with the regulatory regime governing corporate rescue and liquidations. It first considers two procedures that were introduced by the Insolvency Act 1986 aimed at implementing the objective of corporate rescue: the administration order and the company voluntary arrangement, the former of which has been fundamentally reformed by the Enterprise Act 2002. It then discusses voluntary winding-up by companies, members, and creditors under the 1986 Act, as well as the grounds on which the court may initiate compulsory winding-up. The chapter also examines the consequences of a winding-up petition on dispositions of company property; winding-up in the public interest; the duties and functions of the liquidator; provisions allowing avoidance of transactions entered into prior to liquidation; the personal liability of directors under the Insolvency Act 1986; and distribution of surplus assets following liquidation. Finally, it outlines a number of amendments to the 1986 Act.
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The Redundancy Payments Act 1965 was enacted to compensate a long-serving employee for the loss of a right which he has in a job. The Act has been repealed and replaced by corresponding provisions in the Employment Rights Act 1996. This chapter discusses provisions of the Employment Rights Act 1996. It looks at what is a dismissal, transferred redundancies, presumption of redundancy, and offers of alternative employment. Considered are whether redundancy dismissals are fair or unfair; excluded classes of employees; claims for redundancy payments; payments by the Secretary of State; consultation on redundancies; the meaning of the term ‘establishment’; the consultation provisions of the legislation; and notification of mass redundancies to the minister.
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This chapter discusses the three formal mechanisms that facilitate major corporate reconstructions. These are (i) arrangements or reconstructions under the Insolvency Act 1986 ss 110–111; (ii) arrangements, reconstructions, mergers, or divisions under the Companies Act 2006 (CA 2006) Pts 26 and 27; and (iii) takeovers under CA 2006 Pt 28.
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N V Lowe and G Douglas
This chapter addresses two distinct but interrelated problems regarding the family home: ownership and occupation. The first is concerned with the question, in whom are the legal and beneficial interests in the property vested? The second is concerned with the question, what rights of occupation does each party have in the home irrespective of ownership? After discussing the current law governing ownership, the chapter considers the proposals for reform, and compares the English approach with that taken in other jurisdictions. It then turns to occupation rights and the impact of insolvency on the family home.
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This chapter considers the rules that enable insolvency practitioners to claim assets which are not held by the insolvent company itself. It discusses wrongful trading; transactions at an undervalue and preferences; transactions defrauding creditors; and invalid floating charges.
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This chapter considers directors' liabilities for company insolvency. Redress for breach of duty by directors is available through summary action for misfeasance (IA 1986, s. 212) while particular types of trading are targeted for civil recoveries, namely fraudulent trading (ss. 213, 246ZA) and wrongful trading (ss. 214, 246ZB). A liquidator or administrator may also seek to challenge certain transactions which took place in the run-up to liquidation or administration; for example, on the basis that they were transactions at an undervalue (s. 238) or intended to prefer a particular creditor (s. 239). More broadly, the overall conduct of the directors is reviewed in order to determine whether disqualification is an appropriate response.
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This chapter considers the rules that enable insolvency practitioners to claim assets which are not held by the insolvent company itself. It discusses wrongful trading; transactions at an undervalue and preferences; transactions defrauding creditors; and invalid floating charges.
