There have been many reported cases in the bankruptcies of Mr and Mrs Brake (the “Brakes”) including the recent case of Patley Wood Farm LLP v Kicks [2023] EWCA Civ 901 where the Court of Appeal considered an application under s303 of the Insolvency Act 1986 (the “IA 1986”) against a decision of the trustees in bankruptcy of the Brakes (the “Trustees”).
The Supreme Court’s judgment in BTI 2014 LLC v Sequana SA and ors[1] (“Sequana”) is a key decision on the law surrounding directors’ duties.
The High Court was required to consider the Supreme Court’s Sequana judgment in Hunt v Singh (below).
What did we learn from Sequana?
Why calculating potential claims under s214 Insolvency Act 1986 can be far from simple
Introduction
In the recent case of Brake & Anor v Chedington Court Estate Limited [2023] UKSC 29, the Supreme Court has clarified the categories of persons who have standing to make a challenge to the conduct of a trustee in bankruptcy under s303 of the Insolvency Act 1986 (the “Act”). The Supreme Court confirmed that its decision will also apply to creditors and others seeking to challenge the actions of a liquidator under s168(5) of the Act. The decision will be welcomed by practitioners.
Duties and Implications of financial Information in s.214 claims
Introduction
This article follows Part 1 in which I set out the key issues we have recently seen and the case law arising in Misfeasance and Wrongful Trading claims. This Part 2 considers the duties and implications surrounding the financial information that is available to directors when faced with a s.214 wrongful trading claim.
This article is a part one of two series that explores the key issues we have recently seen and the case law arising in Misfeasance and Wrongful Trading claims.
Introduction
What is Wrongful Trading?
The Monthly Insolvency Statistics for November 2020 were released by the government on 15 December 2020 which saw an increase in corporate insolvencies up by 4% to 889, compared to October’s figure of 862 and a fall in personal insolvencies down by 22% with 9,319 compared to October’s figure of 11,945.