A couple of myths dispelled…..

”It’s the company’s problem, not mine.”

Wrong: It’s a surprisingly common misconception that because your business is contained in a limited company, its demise will not affect you. This is simply not correct.

“I work for the shareholders, not the creditors”

One of a business’s greatest concerns with data storage and backup is security, that is, how can you make sure your data is safe both internally and externally if using cloud solutions? Many businesses do not use cloud based solutions because of the perceived security risks. 

Assenagon Asset Management S.A. v Irish Bank Resolution Corporation Limited (formerly Anglo Irish Bank Corporation Limited) [2012] EWHC 2090 (Ch)

Following a case known as Goldacre, it was held that if an administrator is in occupation of a leasehold property, which is being retained for the purposes of the administration, and rent falls due (monthly or quarterly) during his / her occupation, then such rent is to be treated as an expense of the administration (and therefore paid in priority to unsecured creditors). This remains the case even if the administrator occupies only part of the property and whether or not he / she occupies the property for the whole quarter.

The Court’s unanimous decision in RadLAX Gateway Hotel LLC v. Amalgamated Banksettles dispute over the credit-bid right, retaining this important creditor protection.

Key2Law (Surrey) LLP v De'Antiquis [2011] EWCA Civ 1567

In this case the Court of Appeal held that, as a general rule, administration does not fall within regulation 8(7) of TUPE 2006 (which disapplies the automatic transfer principle meaning that employees do not transfer) and instead falls within regulation 8(6) of TUPE 2006 (which is much narrower in scope and only protects a transferee against the transfer of certain liabilities to employees).

In Stern v. Marshall, 564 U.S. ____ (June 23, 2011), the U.S. Supreme Court, in a 5-4 decision, held that the bankruptcy court could not, as a constitutional matter, enter a final judgment on a counterclaim that did not arise under Title 11 or in a case under Title 11, even though 28 U.S.C. § 157(b)(2)(C) expressly permits it to do so. In a dispute concerning the estate of the late J. Howard Marshall II, Pierce Marshall filed a complaint in Vickie Lynn Marshall’s bankruptcy case alleging that Vickie defamed him and that such defamation claim was not dischargeable.

The New York Court of Appeals decision on April 5, in the Midland Insurance Company liquidation (In re Liquidation of Midland Insurance Company1) is an important affirmation of policyholder rights. In this decision, New York’s highest court held that a policyholder is entitled to a claim and policy-specific choice of law analysis in the liquidation process, rejecting the Midland liquidator’s effort to make a blanket application of New York law to Midland’s 38,000 policyholders.

Building services and maintenance contractor Rok was placed into administration in early November. Administrators from PWC are looking for a buyer for the self styled “nation’s local builder”. The move comes just weeks after the administration of its rival Connaught which led to 1,400 redundancies. Rok’s 3,800 employees will be understandably very concerned as will Rok’s customers/employers, many of whom are in the public sector.

What follows are some of the issues that need to be considered when a contractor, like Rok, goes into administration.

Building services and maintenance contractor Rok was placed into administration this week. Administrators from PWC are looking for a buyer for the self styled “nation’s local builder”. The move comes just weeks after the administration of its rival Connaught which led to 1,400 redundancies. Rok’s 3,800 employees will be understandably very concerned as will Rok’s customers/employers, many of whom are in the public sector.