The High Court has considered whether a former liquidator should be held liable under section 212 of the Insolvency Act 1986 (the “Act”) for misapplying company monies in excess of half a million pounds.

The Facts

We are hoping to take on new premises that are currently occupied by the administrators of the previous failed tenant. They will not give an indication of when they intend to leave and this is holding up our own plans. Is there anything we can do to force the administrators to tell us when they will vacate the premises?

Moving to new premises is always stressful, and having to wait for an administrator to vacate is only going to compound the matter. This is increasingly common and can take quite some time to resolve.

McKellar v Griffin emphasises the importance for IPs of establishing the COMI of a foreign company before accepting an appointment as administrators. 

In McKellar (decided in June 2014) the court, on the application of a foreign liquidator, declared that the administrators’ appointment was invalid because the company’s COMI was not in England and Wales. So where does that leave unfortunate insolvency practitioners in similar situations? 

In March the Government announced new pension reforms. From April 2015 pensioners reaching 55 years will be entitled to draw down their entire pension pot, to do with as they wish. Pensions minister Steve Webb was famously quoted as saying that pensioners should be able to “buy a Lamborghini” with their pension pot if they so wish. And if pensioners subsequently ran out of money, well, they would have the state pension to fall back on, after all. 

Pension deficits are by no means the only concern for charities, but they present a severe headache.

There are over 180,000 charities registered in England and Wales, employing around 2,660,000. 
Between them, the Charities Commission has reported a combined pensions deficit of over £3.4 billion. For some charities, the burden of meeting that deficit puts too much of a strain on already stretched resources. 

Key Point

A provisional liquidator may be appointed if the evidence justifies it even where the tax assessments upon which the winding up petition is based are under appeal.

Facts

Key point

Administrators are entitled to remuneration for the full period of office even where work is carried out outside of the scope set out in proposals agreed by creditors

Facts

On August 11, 2014, a consultation paper regarding the transposition of the Solvency II Directive into the Prudential Regulation Authority PRA (“PRA”) rules was published. The paper sets out changes to the PRA’s rules required to implement the Directive as amended by Omnibus Directive II.

The Supreme Court has recently declined to hear retailer Game’s appeal, ruling that there was no arguable point of law of general public importance which ought to be considered, particularly bearing in mind the case had already been the subject of judicial decision and reviewed on appeal.

“… permission to appeal be refused because the application does not raise an arguable point of law of general public importance which ought to be considered by the Supreme Court…”

Fibria Celulose S/A v. Pan Ocean [2014] EWHC 2124 (Ch)

In a significant case regarding the application of the Cross Border Insolvency Regulations 2006 (“Regulations”), the English High Court decided it would not intervene to prevent termination of an English law contract for insolvency even though such termination was inoperative or invalid under the foreign law governing the insolvency.