The High Court has found the former directors of collapsed retail chain BHS liable for wrongful trading, misfeasant trading and individual acts of misfeasance.
Although overall quantum is yet to be decided, this has been widely reported as the largest wrongful trading award the courts have made since the introduction of the Insolvency Act 1986.
Insolvency officeholders seeking to realise claims or other rights of action will take comfort from the Court of Appeal’s decision in Re Edengate [2022] EWCA Civ 626.
The Court held that failure by a liquidator to give a defendant the opportunity to buy or settle a claim against it before selling the claim to a third party is not necessarily perverse. However, it may often be sensible or good practice to do so.
This week’s TGIF considers a recent case where the Supreme Court of Queensland rejected a director’s application to access an executory contract of sale entered into by receivers and managers on the basis it was not a ‘financial record’
Key Takeaways
This week’s TGIF looks at the decision of the Federal Court of Australia in Donoghue v Russells (A Firm)[2021] FCA 798 in which Mr Donoghue appealed a decision to make a sequestration order which was premised on him ‘carrying on business in Australia' for the purpose of section 43(1)(b)(iii) of the Bankruptcy Act 1966 (Cth) (Act).
Key Takeaways
The FCA has published finalised guidance for insolvency practitioners (IPs) appointed (or looking to be appointed) over regulated firms.
This sets out the FCA’s expectations as to how IPs can ensure firms continue to meet their regulatory obligations both before an appointment and during the course of an insolvency process. It confirms the FCA’s view of what would constitute good practice, as well as linking in to some of the existing statutory obligations on regulated firms and/or IPs.
The National Security and Investment Act 2021 creates a new screening regime for transactions which might raise national security concerns in the UK. It passed into law on 29 April 2021 and is expected to come into effect by autumn 2021.
However, as the Act has retrospective effect from November 2020, insolvency practitioners need to understand the implications for insolvency sales taking place now. We have summarised the headline issues for insolvency practitioners below.
You need to consider the impact of this Act on transactions that are taking place now.
This week’s TGIF considers an application to the Federal Court for the private hearing of a public examination where separate criminal proceedings were also on foot.
Key takeaways
This week’s TGIF looks at a recent decision of the Victorian Supreme Court, where a winding up application was adjourned to allow the debtor company to pursue restructuring under the recently introduced small business restructuring reforms.
Key takeaways
Voluntary measures to scrutinise pre-pack sales to connected parties have not been enough to alleviate creditor concerns, says the Government. A new regulatory framework governing connected party sales in administration will be put in place before the end of June 2021. Draft regulations were published on 8 October 2020.
This week’s TGIF takes a look at the recent case of Mills Oakley (a partnership) v Asset HQ Australia Pty Ltd [2019] VSC 98, where the Supreme Court of Victoria found the statutory presumption of insolvency did not arise as there had not been effective service of a statutory demand due to a typographical error in the postal address.
What happened?