Contingent liabilities in corporate insolvency
Two recent court decisions have dealt with the issue of contingent liabilities in relation to corporate insolvency both with relevance to Section 123 of the Insolvency Act 1986. The issue relates to whether or not these debts ought to be considered on the balance sheet and be considered in real terms as a test of a company's solvency and also, with a wider review, in relation to directors' conduct and in particular recovery actions against directors under Sections 212, 213, 214, 238, 239 and 423 of the Insolvency Act 1986. Read more...
Employees' protective award made after the company goes into liquidation, are provable debts
Sir Donald Rattee caused some consternation amongst insolvency practitioners by his High Court decision late last year that a protective award made after the date of liquidation in favour of employees based on of the employer's failure to consult on redundancies as required by Section 189 Trade Union and Relations (Consolidation) Act 1992 was not provable in the liquidation. Read more...
Legislative changes
Following previous editions of inform insolvency, we dealt with the decisions in Trident and Leyland Daf. Both of these have recently been subject to legislative amendments and it is worth updating you here. Read more...
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