Insolvency practitioners are long used to the legal procedure of creditors’ meetings as the way in which creditors, the key players in the insolvency process, make vital decisions about a company or individual who is insolvent.
From 6 April 2017 this will change completely. Creditors will still be the key decision makers in the insolvency process but physical creditors’ meetings will now only be called at the request of at least 10% of creditors in number or value or of at least 10 creditors in number and then only after one of the new decision making procedures has been initiated. (more…)
Insolvency appointment takers should have reliable systems in place to deal with all aspects of insolvency work without having to use their own time, or that of senior staff, as a failsafe to make sure that everything is done properly. Well prepared systems and reference guidelines should provide support for less experienced staff, allowing senior staff to focus on new work and more complex issues, so using their time more efficiently.
Members’ voluntary liquidations are unique among appointments for insolvency practitioners as they involve distributions to shareholders. These are frequently the last tranche of distributions to shareholders after the business of a solvent company has been wound down, its assets have been realised, all the trade creditors paid in full and the members’ voluntary liquidation is the last stage in the company’s history. (more…)
The Data Protection Act is widely drafted and complex legislation aimed at protecting the privacy of people in the UK. It is legislation that affects insolvency practitioners and this email just gives information about the Data Protection Act in relation to insolvency practitioners. (more…)
Insolvency practitioners have on occasion said that regulators have criticised them for not having a ‘Bribery Act checklist’ for each new appointment. There is no obvious requirement in the Bribery Act that would make it mandatory to have a pre appointment Bribery Act insolvency procedure but the importance of compliance with the Bribery Act justifies reviewing this again. (more…)
Since April 2016 insolvency practitioners have not been able to recover either success fees or uplift fees in conditional fee agreements or any adverse costs insurance premium, as insolvency practitioners’ exemption from the Legal Aid, Sentencing and Punishment of Offenders Act 2012 came to an end. (more…)
When a person ceases to be an administrator he is discharged from liability in respect of any action of his as administrator, provided that this release has been properly granted under S98 of Sch B1 of the Insolvency Act 1986. The validity of his release from personal liability is probably even more important to an administrator than the validity of his appointment. S105 of Sch B1 IA 1986 validates any act of the administrator in spite of a defect in his appointment. There is no such validation clause for the administrator’s release. (more…)