The UK's latest quarterly company insolvency statistics, published on 30 April, show that insolvency rates remain significantly below pre-pandemic levels, demonstrating the continued success of Government measures in preventing a COVID-19 related wave of insolvencies.
For most businesses, the Chancellor’s budget statement yesterday brings some welcome news with the extension of certain critical Covid-19 support measures. However, this is coupled with the removal of certain government-backed loan schemes and a future increase in the corporation tax rate from 19 per cent to 25 per cent from 2023 onwards.
The UK's latest quarterly company insolvency statistics, including the 2020 annual summary, were published on 29 January, painting a picture of the effectiveness of government measures introduced over the past year to support companies during the COVID-19 pandemic.
In Uralkali v Rowley and another [2020] EWHC 3442 (Ch), the High Court confirmed that it is unlikely that an officeholder would be found to owe a duty of care to participants in a sale process out of an insolvent estate. This is an important decision which will give officeholder’s considerable comfort that operating an administration or liquidation sale in the ordinary course is unlikely to expose them to risk of liability to a bidder for the way the process is run.
At 11pm on 31 December 2020, the UK-EU Trade and Cooperation Agreement (TCA) came into effect implementing the UK’s exit from the single market. The TCA covers some important things in great detail and some things more scantly. Unfortunately for insolvency practitioners, it is largely silent on almost all issues relating to insolvency, meaning that, despite not technically having a ‘no-deal’ Brexit, for insolvency practitioners it may certainly feel that way.
Recognition of insolvency proceedings
The recognition of the powers of an English trustee in bankruptcy in Guernsey is generally pursued either by way of a letter of request issued by the foreign court pursuant to section 426 of the Insolvency Act 1986 (Insolvency Act) or by way of an application via the common or customary law.
The recent decision from the Guernsey Royal Court in DM Property Holdings (Guernsey) Limited (in Liquidation)(1) is of fundamental importance to Guernsey insolvency practitioners as it provides cautionary guidance on the practical implications of Practice Direction 3/2015.
Imagine that your partnership is on the cusp of concluding a large transaction which has the potential to be immensely profitable. The partnership agreement does not include a fixed term for the partnership, and can instead be terminated on one partner giving notice to the others (referred to as a “partnership at will”).