Cases Insolvency & Restructuring
Judgment Date: 11 Oct 2016
The statutory interest to be paid under the Insolvency Rules 1986 r.2.88(7) out of a surplus in an administration was not "yearly interest" within the meaning of the Income Tax Act 2007 s.874. The administrators therefore had no obligation to account for income tax on the interest payments.
Judgment Date: 28 Jul 2016
A director who had given a disqualification undertaking and asked the court to exercise its discretion under the Company Directors Disqualification Act 1986 s.8A to reduce the agreed period, or to order that the undertaking should cease to have effect, had to demonstrate special circumstances. Failure to take legal advice when invited to do so and failure to appreciate the consequential effects of the undertaking were not special circumstances.
Judgment Date: 17 Jun 2016
A judge had erred in granting summary judgment to the directors of a company in liquidation in respect of a claim for breach of their fiduciary duty, on the basis that the claim was time-barred. No limitation period applied to the claim by reason of the Limitation Act 1980 s.21(1)(b) and, alternatively, the availability of a postponed limitation period, such that the proceedings had been started in time under s.32, could not be determined on an application for summary judgment.
Judgment Date: 17 Dec 2015
On an application under the Insolvency Act 1986 Sch.B1 para.63 by the administrators of two insolvent insurance intermediaries, the court gave directions for the distribution of funds held in the companies' client accounts which were subject to the statutory trust regime in Chapter 5 of the Client Assets Sourcebook in the Financial Conduct Authority Handbook.
Judgment Date: 09 Jul 2015
A company in administration recovered sums paid to third parties by its driving force, who appeared to have been a con-man. Its administrators' applications for orders under the Insolvency Act 1986 s.238 in respect of those sums, made on the basis that the payments were transactions at an undervalue, failed because there had not been "transactions" between the company and the third parties.
Judgment Date: 26 Jun 2015
An order which permitted a liquidator to disclose the product of a private examination of a director under the Insolvency Act 1986 s.236 to the assignee of claims vesting in an insolvent company was varied to permit a second assignee to have disclosure. There was no evidence of any breach of the previous order and the situation could not be distinguished from one where the liquidator had sought to use the information himself.
Judgment Date: 14 May 2015
By a majority the Court of Appeal held that foreign currency creditors who had suffered a currency loss as a result of the conversion of their debts into sterling at the start of the administration of an unlimited company were entitled to claim against the company, though their claims would rank only as unprovable liabilities.