Laura Marchington

Author: Chris Millar

1. Does a conflict of interest arise where a solicitor acts for both the Petitioning Creditor and the Liquidator of a company?

Author: Chris Millar

IT supplies are hugely important for the continuation of many businesses and section 233A of the Insolvency Act 1986 extends the list of essential suppliers to include IT supplies “for the purpose of enabling or facilitating anything to be done by electronic means”. Such suppliers will be unable to terminate supplies or demand existing pre-insolvency debts are paid, as a condition of continuing supplies.

Author: Angus Storar

Recently, a Ministry of Justice poll of Court users for 2014/2015, showed that 70% of all Claimants had attempted to resolve their dispute directly with their opponents and of those Claimants, 68% would have rather avoided making a Court claim and the expense of litigation..

Author: Martin Steer

The issue fees for all civil claims above £10,000 are now calculated at 5% of the value of the claim subject to a maximum Court fee of £10,000 and Claims of £200,000 or more will cost £10,000 to issue.

Author: Laura Marchington

Historically, the service of a Statutory Demand has been the precursor to commencing insolvency proceedings, whether it was bankruptcy proceedings against an individual or a Winding up Petition against a corporate director.

Author: Floris Shoebridge

The Government has recently announced that court fees for the issuing of civil claims are to increase dramatically from April 2015 attracting criticism from Senior Judges, the Law Society, and other members of the legal profession.

Author: Tamsin Reader

In the case of Marks & Spencer Plc v BNP Paribas Securities Services Trust Company (Jersey) Ltd & Another [2014], the Court of Appeal has overturned a first instance decision. The tenant, M&S, had exercised a break clause ending its lease early.

Author: Laura Marchington

Commercial Rent Arrears Recovery (CRAR) is a method of enforcement to recover rent arrears relating to commercial properties. CRAR came into force on 6th April 2014 and is governed by the Tribunals Courts and Enforcement Act 2007 (TCEA) and the Taking Control of Goods Regulations 2013 (TCGR). CRAR must now be used for commercial property and the common law rights of distress is abolished.

Author: Chris Millar

The Insolvency Rules 1986 are likely to be replaced wholesale by new Rules later this year which are likely to provide, inter alia:-

Author: Chris Millar

Section 1140 of the Companies Act 2006 permits a document to be served on a Company Director by leaving it at or by sending it by post to the person's registered address i.e. the address in the Register of Directors held at Companies House.

Author: Chris Millar

Another set-back for Madoff recoveries.

Author: Chris Millar

If a liability order on which a Bankruptcy Petition was grounded, is set aside on appeal, this change in circumstance provides a ground for rescinding the Bankruptcy Order (under Section 375(1) IA 1986.)

This case related to the liability of a director for unpaid National Insurance Contributions (NIC) under Section 121C of the Social Security Administration Act 1992.

Author: Chris Millar

The wife applied to annul the husband’s Bankruptcy Order.

Author: Chris Millar

The Supreme Court decided that assets were held by a company as bare trustee for the husband, and therefore could be brought into account, but also held that if a Court can find no other way to get at the assets in question where an individual seeks to evade a legal obligation by interposing a company, then the Court may be prepared to pierce the corporate veil.

Those that attended the IP seminar earlier this year will have hopefully reflected upon the wider aspects of the “means” available to seek and obtain recognition and reciprocity of insolvency proceedings e.g. UNCITRAL, EC Regulation, common law and/or Section 426.

Recovery by a Trustee of his costs can often be problematic. This may be particularly so where the bankrupt has managed to obtain an annulment.

In the final analysis, it is considered that these cases should not be a fundamental problem for IP’s as the issues highlighted can be avoided. Indeed, the recent case of “Bilta (UK) Limited v Nazir” [2012] shows this issue in stark contrast where the High Court was willing to apply the scope of section 213 in an extra-territorial context.

What is, however, probably more relevant in the international context, is the proposed amendments to the Regulation. Amongst these are:-

To include “hybrid” (debtor in possession e.g. CVA) and “pre-Insolvency” schemes (restructuring e.g. Schemes of Arrangement) within the scope of the Regulation.
Foreign Creditors are given the right to challenge a decision regarding a company’s COMI.
Secondary proceedings will no longer have to be winding up proceedings, and the Court will be obliged to consider the views of the office – holder in the main proceedings.
There will be a greater obligation on office-holders to consult and coordinate in cases involving the Insolvency of a group of companies in different jurisdictions.
There is to be an internet-based register available to the public regarding insolvencies in each EU Jurisdiction, probably via the European e-Justice Portal (ec.europa.eu.civiljustice)
On 15th April 2013 the UK announced its intention to opt-in to the proposed amendments albeit that it is understood that Schemes of Arrangement will be excluded from the amendments to the Regulation.

For further information, please contact Chris Millar either by telephone on 01306 502225 or by email c.millar@downslaw.co.uk

Software Licences - who game is it?

Whilst Court proceedings are often contemplated and commenced in order to resolve civil disputes between private individuals or companies..,

What is the general nature and effect of judicial measures available for plaintiffs to obtain provisional relief affecting property of debtors to obtain security for judgments to be obtained (“attachments”)?  Freezing property in place?  Placing it in the custody of a third party, such as a court official, sheriff or marshall?

Author: Nigel Cook

The case arose because of a purported appointment of administrators following the filing of a notice of intention (NOI) by the directors (which had to be given to the floating chargeholder) but immediately after a winding up petition had been filed by the judgement creditors who also opposed this application. This appointment was invalid because of para 25 of Schedule B1.

Author: Nigel Cook

In this case, the Court of Appeal considered a challenge to an Administrator’s appointment under paragraph 14 of Schedule B1 made by a floating charge holder.

Author: Chris Millar

The High Court has held that a discussion between business people in a pub did not create an oral contract as there was no intention to create a legal relationship.

Three Jersey incorporated companies owned shopping centres in England and each had granted qualifying floating charges to its main lender, Nationwide Building Society (NBS).  NBS entered into arrangements with the respondents to share the funding risk with the respondents and to sell the loan. 

Author: Chris Millar

1. Does a conflict of interest arise where a solicitor acts for both the Petitioning Creditor and the Liquidator of a company?

Author: Chris Millar

IT supplies are hugely important for the continuation of many businesses and section 233A of the Insolvency Act 1986 extends the list of essential suppliers to include IT supplies “for the purpose of enabling or facilitating anything to be done by electronic means”. Such suppliers will be unable to terminate supplies or demand existing pre-insolvency debts are paid, as a condition of continuing supplies.

Author: Angus Storar

Recently, a Ministry of Justice poll of Court users for 2014/2015, showed that 70% of all Claimants had attempted to resolve their dispute directly with their opponents and of those Claimants, 68% would have rather avoided making a Court claim and the expense of litigation..

Author: Martin Steer

The issue fees for all civil claims above £10,000 are now calculated at 5% of the value of the claim subject to a maximum Court fee of £10,000 and Claims of £200,000 or more will cost £10,000 to issue.

Author: Laura Marchington

Historically, the service of a Statutory Demand has been the precursor to commencing insolvency proceedings, whether it was bankruptcy proceedings against an individual or a Winding up Petition against a corporate director.

Author: Floris Shoebridge

The Government has recently announced that court fees for the issuing of civil claims are to increase dramatically from April 2015 attracting criticism from Senior Judges, the Law Society, and other members of the legal profession.

Author: Tamsin Reader

In the case of Marks & Spencer Plc v BNP Paribas Securities Services Trust Company (Jersey) Ltd & Another [2014], the Court of Appeal has overturned a first instance decision. The tenant, M&S, had exercised a break clause ending its lease early.

Author: Laura Marchington

Commercial Rent Arrears Recovery (CRAR) is a method of enforcement to recover rent arrears relating to commercial properties. CRAR came into force on 6th April 2014 and is governed by the Tribunals Courts and Enforcement Act 2007 (TCEA) and the Taking Control of Goods Regulations 2013 (TCGR). CRAR must now be used for commercial property and the common law rights of distress is abolished.

Author: Chris Millar

The Insolvency Rules 1986 are likely to be replaced wholesale by new Rules later this year which are likely to provide, inter alia:-

Author: Chris Millar

Section 1140 of the Companies Act 2006 permits a document to be served on a Company Director by leaving it at or by sending it by post to the person's registered address i.e. the address in the Register of Directors held at Companies House.

Author: Chris Millar

Another set-back for Madoff recoveries.

Author: Chris Millar

If a liability order on which a Bankruptcy Petition was grounded, is set aside on appeal, this change in circumstance provides a ground for rescinding the Bankruptcy Order (under Section 375(1) IA 1986.)

This case related to the liability of a director for unpaid National Insurance Contributions (NIC) under Section 121C of the Social Security Administration Act 1992.

Author: Chris Millar

The wife applied to annul the husband’s Bankruptcy Order.

Author: Chris Millar

The Supreme Court decided that assets were held by a company as bare trustee for the husband, and therefore could be brought into account, but also held that if a Court can find no other way to get at the assets in question where an individual seeks to evade a legal obligation by interposing a company, then the Court may be prepared to pierce the corporate veil.

Those that attended the IP seminar earlier this year will have hopefully reflected upon the wider aspects of the “means” available to seek and obtain recognition and reciprocity of insolvency proceedings e.g. UNCITRAL, EC Regulation, common law and/or Section 426.

Recovery by a Trustee of his costs can often be problematic. This may be particularly so where the bankrupt has managed to obtain an annulment.

In the final analysis, it is considered that these cases should not be a fundamental problem for IP’s as the issues highlighted can be avoided. Indeed, the recent case of “Bilta (UK) Limited v Nazir” [2012] shows this issue in stark contrast where the High Court was willing to apply the scope of section 213 in an extra-territorial context.

What is, however, probably more relevant in the international context, is the proposed amendments to the Regulation. Amongst these are:-

To include “hybrid” (debtor in possession e.g. CVA) and “pre-Insolvency” schemes (restructuring e.g. Schemes of Arrangement) within the scope of the Regulation.
Foreign Creditors are given the right to challenge a decision regarding a company’s COMI.
Secondary proceedings will no longer have to be winding up proceedings, and the Court will be obliged to consider the views of the office – holder in the main proceedings.
There will be a greater obligation on office-holders to consult and coordinate in cases involving the Insolvency of a group of companies in different jurisdictions.
There is to be an internet-based register available to the public regarding insolvencies in each EU Jurisdiction, probably via the European e-Justice Portal (ec.europa.eu.civiljustice)
On 15th April 2013 the UK announced its intention to opt-in to the proposed amendments albeit that it is understood that Schemes of Arrangement will be excluded from the amendments to the Regulation.

For further information, please contact Chris Millar either by telephone on 01306 502225 or by email c.millar@downslaw.co.uk

Software Licences - who game is it?

Whilst Court proceedings are often contemplated and commenced in order to resolve civil disputes between private individuals or companies..,

What is the general nature and effect of judicial measures available for plaintiffs to obtain provisional relief affecting property of debtors to obtain security for judgments to be obtained (“attachments”)?  Freezing property in place?  Placing it in the custody of a third party, such as a court official, sheriff or marshall?