Summary
This briefing looks at the “period of grace” provisions that can apply in some cases to the debts that arise on employers under section 75 of the Pensions Act 1995.
In a multi-employer scheme, if one employer ceases to employ any active members, a s75 debt can arise on that employer. The period of grace provisions allow the employer to serve a notice so that the debt is suspended, giving the employer a period (at least a year, but potentially up to three years if the trustees agree) in which to employ an active member.
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?
Agriculture is a long-term business and most people within the sector are proud of its reputation for straight talking and fair dealing. Debt issues can arise at any stage, but there are particular cyclical problems at the moment which mean that there is more debt-chasing activity, as cashflow pressures intensify.
Better late than never, the Third Party (Rights Against Insurers) Act of 2010 finally came into force in an amended form on 1 August 2016. It applies across the UK, with minor variances between Scotland and England and Wales. The Act updates third party creditors’ rights against insurers under the 1930 Act of the same name, permitting a streamlined and more cost-efficient procedure for creditors’ claims against insurers in circumstances where the insured company/ individual which took out the liability insurance has suffered an insolvency event.
Historic Position
In Rowtree Ventures Ltd v Oak Property Partners Ltd the High Court declined to exercise discretion on making administration orders in respect of two companies that were unable to pay their debts and where the statutory purpose was likely to be achieved.(1) Interestingly, the court appears to have exercised a degree of independent commercial judgement in determining whether to engage an insolvency process.
The Guide to ACV has been updated to 10th June 2016 including recent appeals decision and expanded consideration of nominators; supporting evidence; assessment process; nominations of pubs; and exempt disposals.
Assets of Community Value guide
Blighting of development or boosting the local community
CONTENTS
Vanquish Properties (UK) Ltd Partnership v Brook Street (UK) Ltd [2016] EWHC 1508 (Ch)
Vanquish, a developer, was a Limited Partnership under the Limited Partnerships Act 1907 with one General Partner, liable for all obligations of the business, and four Limited Partners.
It was granted an overriding lease by the City Corporation in the name of the Limited Partnership, “acting by” its General Partner. There was no mention of the four Limited Partners.
Summary
The High Court recently handed down the judgment in Ralls Builders Ltd (In Liquidation), Re [2016] EWHC 1812 (Ch). It was held that liquidators and administrators are not able to recover their own costs and expenses of investigating a wrongful trading claim from the directors of a company, even following a finding of wrongful trading under section 214 Insolvency Act 1986.
Background