The Office of the Director of Corporate Enforcement (ODCE) recently issued new guidance outlining the implications of COVID-19 on its insolvency related functions. The statement provides an update on how they will assess the actions of directors of companies which have gone or will go into an insolvent liquidation as a consequence of the pandemic. The guidance is undoubtedly a welcome publication during this difficult time for almost all businesses.

Background

In the recent case of Re M.D.Y. Construction Limited [2018] IEHC 676, an Interim Examiner made an application pursuant to section 541 of the Companies Act 2014 (the “2014 Act”) to have proposals for a scheme of arrangement confirmed by the High Court. Interestingly, the application was made before the Interim Examiner’s appointment had been confirmed by the Court.

Section 541 of the 2014 Act provides, inter alia, that the report of an Examiner shall be set down for approval by the Court as soon as may be after receipt of the report by the Court.

The Queensland Court of Appeal has upheld an appeal by the liquidators of Linc Energy Limited (In Liquidation) (“Linc”) and given full effect to their disclaimer of contaminated mining property and onerous obligations the subject of an environmental protection order (“EPO”) issued by the Queensland Department of Environment and Science (“DES”).[1]

In Berryman v Zurich Australia Ltd [2016] WASC 196 it was decided that a bankrupt's entitlement to claim a TPD benefit under a life insurance policy is not an entitlement that is divisible amongst the bankrupt's creditors, and therefore such an entitlement does not vest in the Official Trustee in bankruptcy. Tottle J of the Supreme Court of Western Australia ruled that the bankrupt insured could continue an action in his own name to recover the TPD benefit. Life insurers may need to adjust their claims' payment practices in light of the Berryman decision.