Corporate insolvency
A guide to the main legislative provisions relating to corporate insolvency in England and Wales. The issues that directors of companies in financial difficulty need to take into account are also considered.
ICSA Solutions
ICSA Solutions are an innovative series of ebooks that provide immediate access to all the necessary information on a particular topic; offering practical guidance, case studies and time-saving checklists.
ICSA Solutions
ICSA Solutions are an innovative series of ebooks that provide immediate access to all the necessary information on a particular topic; offering practical guidance, case studies and time-saving checklists.
Contents
ICSA Solutions
ICSA Solutions are an innovative series of ebooks that provide immediate access to all the necessary information on a particular topic; offering practical guidance, case studies and time-saving checklists.
ICSA Solutions
ICSA Solutions are an innovative series of ebooks that provide immediate access to all the necessary information on a particular topic; offering practical guidance, case studies and time-saving checklists.
1. Administration
Chapter 1 looks at administration, a court-based procedure designed to encourage the restructuring and rescue of insolvent companies.
2. Company voluntary arrangement
Chapter 2 covers company voluntary arrangements (CVAs) which are compromises or other contractual arrangements between a company and its creditors governed by the Insolvency Act 1986. They normally contains some form of rescheduling or reduction of the company's debt.
3. Scheme of arrangement
Chapter 3 looks at schemes of arrangement which are compromises or arrangements between a company and its creditors and members. Governed by the CA 2006, they can be used for a number of internal reorganisations by both solvent and insolvent companies.
4. Receivership
Chapter 4 looks at receivership as a form of insolvency procedure. It covers the different types of receiver and outlines their powers and duties.
5. Liquidation
Chapter 5 covers liquidation whereby a liquidator takes control of a company in order to collect in and realise its assets and distribute the net proceeds to creditors. The different types of liquidation are outlined.
6. Provisional liquidation
Chapter 6 looks at provisional liquidation, an emergency procedure designed to preserve a company's assets in the period between the filing of a winding-up petition and the hearing of the petition.
7. Distributions to creditors
Chapter 7 looks the general principles of distribution in corporate insolvency as, by definition, an insolvent company does not have sufficient assets to pay all of its creditors in full.
8.Set off
Chapter 8 covers the rules of insolvency set off which may apply if a company is in liquidation or administration
9. Pre-packaged sales
Chapter 9 looks at 'pre-packaged sales' whereby an insolvent company's business and assets are sold immediately following the placement of the company in a formal insolvency process. The potential advantages and disadvantages are discussed.
10. Issues for directors of companies in financial difficulty
Chapter 10 looks at the difficult decisions directors need to make regarding the management of the company's business and the treatment of its creditors.
11. Directors' duties
Chapter 11 covers directors' duties when a company is insolvent.
12. Disclosure and consultation obligations
Chapter 12 outlines the disclosure and consultation obligations for companies in financial difficulty.
13. Directors' personal liabilities
Chapter 13 looks at the potential personal liabilities for directors of companies facing financial difficulty.
14. Directors' disqualification
Chapter 14 looks at the disqualification of directors in relation to company insolvency.
15. Adjustment of antecedent transactions
Chapter 15 covers transactions entered into before a company goes into an insolvency procedure which may be challenged in court.
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This document provides an overview, and is not intended to be comprehensive or constitute legal advice. Specific legal advice should always be sought in relation to the particular facts of a given situation.
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The publication does not necessarily deal with every important topic or cover every aspect of the topics with which it deals. It is not intended to provide legal advice and should not be treated as a substitute for legal advice. Legal advice should always be sought before taking action based on the information provided. The authors bear no responsibility for errors and omissions.
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