Much has been made in the press regarding the news that Companies House is considering amending its current policy of retaining the records of dissolved businesses for 20 years post dissolution. This motion has reportedly been born out of a decision by the European Court of Justice in spring 2014 to ‘create a right to be forgotten.’
The only certainty following the referendum is that exiting the EU will substantially alter the legal landscape from a recovery and insolvency viewpoint.
Over the past few years the various EU members have been working hard to eradicate or minimise inconsistencies between the individual regulations which have led to not only confusion but also “forum shopping” by those facing insolvency. The idea is to provide a level playing field so that businesses in particular knew where they stood should a company in another country get into trouble.
Following the referendum outcome Andrew Tate, president of R3 (the Association of Business Recovery Professionals), has stated that “there is clearly going to be a period of huge economic uncertainty” and has requested that all members (Insolvency Practitioners, lawyers and advisors) “step up to help businesses and individuals”.
The Insolvency Service tweeted on 27 July 2016 with some satisfaction that last year it disqualified 1,208 directors for unfit conduct.
Our economy is reliant upon business people and entrepreneurs taking risks and trying new enterprises and the insolvency and rescue culture is there to support that but there must also be an appreciation that there is a difference between bad luck, bad management and bad behaviour.
Does the Insolvency Service differentiate on this?
This is the first in a series of blogs that we are posting to assist SME’s in informing and making informed decisions as to your debtors and options in case your business experiences serious financial difficulties.
Are your clients paying within terms? Are slow or non-paying clients hurting your cash-flow? Don’t want the time and expense of costly litigation?
Ever wondered what ‘administration’, in the company/business sense actually means? Partner and Insolvency specialist Chris McDuff explains here in the second of our blog series on options for an SME when it finds itself experiencing financial difficulties.
Administration
The Insolvency Act 1986 (the Act) and theInsolvency Rules 1986 (the Rules) govern the administration process for England and Wales.
What is Administration?
Monday’s Treasury Select Committee report into the collapse of BHS provided scathing criticism of the actions of former owner Sir Philip Green, but would annulling his Knighthood really provide adequate redress for the company’s pension shortfall?
The 1st August 2016 sees the coming into force of the Third Parties (Rights Against Insurers) Act 2010. The 2010 Act will replace the Third Parties (Rights Against Insurers) Act 1930, and will hopefully make it easier for claimants who have claims against insolvent defendants to bring in the defendant’s insurer.
The 1930 Act
The recent case of Re Ralls Builders Limited has confirmed that in circumstances where the company is heading for liquidation directors cannot escape a wrongful trading claim by ignoring individual creditors. It emphasises the importance of taking the correct legal advice at an early stage.