Insolvency and Debt Recovery

Directors Duties Update

Senior Associate Solicitor Lauren Hartigan-Pritchard

In the recent decision of Dickinson v NAL Realisations (Staffordshire) Ltd, the High Court had to determine whether certain transactions entered into by a company with one of its directors had been adequately authorised, whether they contravened the Companies Act 2006, whether they entailed breaches of duty on his and his co-directors’ parts, and whether…

Insolvency Update

Thursfields Staff Member 38

Restriction on the re-use of a company name does not apply to insolvent partnerships In the recent decision of Re Newtons Coaches Limited (Newton and another v Secretary of State for Business Energy and Industrial Strategy) [2016] EWHC 3068 (Ch) (29 November 2016 the High Court held that the restrictions on the re-use of a…

Court of Appeal decision in Insolvency case

Thursfields Staff Member 71

Unlawful dividend payments are not assets for the purposes of assessing inability to pay debts under the Section 123 of the Insolvency Act 1986 In the recent case of Evans v Jones and anor [2016] EWCA Civ 660 (CA) the court of appeal was asked to consider whether the payment of unlawful dividends by Rococo…

Directors not liable for costs of wrongful trading proceedings

Thursfields Staff Member 74

In Re Ralls Builders Ltd (in liquidation) [2016] EWHC 243 (Ch), the subject of our earlier article, liquidators brought wrongful trading proceedings against the directors under s 214 of the Insolvency Act 1986 for a contribution to the company’s assets. In the aforementioned case the court held that the directors should have realised earlier that…

Insolvency Update – Recovering Costs

Senior Associate Solicitor Lauren Hartigan-Pritchard

Liquidators and administrators cannot recover their costs and expenses for bringing wrongful trading actions against directors The recent case of Re Ralls Builders Ltd (in liquidation) [2016] EWHC 1812 (Ch) (20 July 2016) has been well reported, the court having decided that despite a finding of wrongful trading the directors were not liable to contribute…

Contingent assets are excluded from the balance sheet test

Thursfields Staff Member 96

In the recent case of Evans v Jones [2016] EWCA Civ 660 (07 July 2016) the Court of Appeal held that contingent assets are not to be taken into account when assessing insolvency in relation to a preference action. In this case, the directors’ loans were repaid by the company prior to its liquidation. It…

Changes to Insolvency Fees

Thursfields Staff Member 96

In 2014 the Insolvency Service agreed it would carry out an evaluation of the insolvency fees with a view to designing a new, more transparent structure that would place the agency on a more maintainable economic platform. The changes come into force on 21 July 2016. As with the current structure, the deposit and administration…

Unlawful means conspiracy can be based on insolvency claims in the High Court

Thursfields Staff Member 96

The High Court has held that an unlawful means conspiracy claim had a real view of success, where the alleged unlawful means were acts covered by sections 238, 239 and 423 of the Insolvency Act 1986 (IA 1986).These sections provide relief in respect of transactions at an undervalue, preferences, and transactions defrauding creditors respectively. The…

Recent Changes to Debtors’ Bankruptcy Petition Process

Thursfields Staff Member 96

With effect from 6 April 2016, a debtor can no longer petition the court to be made bankrupt, but will instead apply online to an adjudicator, who will make a bankruptcy order if appropriate. Where a debtor submits an application online, the adjudicator must apply to the Chief Land Registrar for the bankruptcy application to…

Trustees In Bankruptcy – High Court Decision

Thursfields Staff Member 96

In the recent decision of Hamilton and another v Brown and another [2016] EWHC 191 (Ch) the High Court has confirmed that trustees in bankruptcy of a shareholder do not need to be registered as members of a company in order to petition for the winding up of a company or claim shareholder entitlements to…

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