On 31 December 2014, the Financial Services (Banking Reform) Act 2014 (Commencement No 7) Order 2014, SI 2014/3160 extended the list of unsecured debts afforded preferential status in insolvency proceedings. Following this recent change, it is worth reminding ourselves how assets are distributed in a corporate insolvency.

General Principles

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

The High Court has recently considered whether to exercise its jurisdiction to hear winding-up petitions brought against two companies incorporated in Saint Vincent and the Grenadines.

The Facts