The Facts
This was an appeal by liquidators to the Court of Appeal from a decision refusing to grant an order that payments made to the respondent directors totalling nearly £450,000 were preferences.
By the time of the appeal, it was accepted that the payments were made within the relevant time and with the requisite intention to prefer.
Previous Decision
Appointment of receivers in respect of a group entity takes “control” of that entity outside the group for tax purposes, but does this decision have more far reaching consequences?
The First Tier of the Tax Tribunal heard appeals against closure notices issued by HMRC denying claims for group relief by a group of companies, including a company over whose assets a fixed charge receiver (FCR) had been appointed (the Borrower).
Key points
- There have been conflicting decisions on whether a person may be made the subject of any income payments order (IPO)
- This case suggests that the court will not make an IPO in respect of unelected pension entitlements
The facts
Key points
Challenging the transfer of assets through ancillary proceedings as transactions at an undervalue remains challenging.
The facts
This case centred around a property in Coventry originally owned and developed by a Mr Singh. After failing to pay his builders a substantial amount, on which he was subsequently bankrupted, Mr Singh charged the property to his father and then his sister-in-law.
The joint report from two parliamentary committees in respect of the City Link administration, concluding that the current system is too heavily skewed in favour of investors over workers, demonstrates the difficulty that directors have in the run up to an insolvency process. Neil Smyth, partner in the Restructuring & Corporate Recovery practice at international law firm Taylor Wessing, explains:
Blue Monkey Gaming v Hudson & Others
Insolvency professionals will welcome the High Court's decision in Blue Monkey Gaming Limited v Hudson & Others [2014] which is clear authority that the onus is upon retention of title claimants, not administrators, to locate and identify retention of title goods. The court made clear that to require the administrator to identify retention of title goods would be "totally unrealistic and practically unworkable."
The facts
A liquidator pursued a claim against a former director of a company, that the transfer of the company’s trading inventory in satisfaction of money owed to the former director was a transaction at an undervalue and/or a preference.
An attempt was made to grant floating charge security over the inventory, which the court found was void as it was granted for existing liabilities, at a time when the company was insolvent, to a connected party.
The Facts
A liquidator applied for permission to amend his claim for fraudulent trading. The claim against the respondents related to purported defrauding of HMRC for non-payment of VAT.