The Coronavirus Act 2020 is now in force and Section 82 of that Act effecting the postponement of the landlord’s right to forfeit for non-payment of rent is causing consternation amongst both landlords and tenants as they seek to navigate through these uncertain times.
The toughening of lockdown measures in Spain and resulting closure of all business activities not classed as essential makes it absolutely necessary to keep very much in sight this week the measures approved in the labor and employment field. In the domain of corporate law and commercial contracts, the decision governing the first tranche of guarantees to soften the economic effects of the crisis has already been published in the Spanish Official State Gazette (BOE). As for tax matters, the personal income tax and wealth tax season is about to start.
In last week's Government budget, the Chancellor of the Exchequer confirmed that Crown preference would return but that this would be delayed to 1 December 2020. We previously wrote about Crown preference in November 2018 when the Government first suggested its return. That post, which is available here, is a handy summary of what Crown preference is and its impact on secured creditors.
The April 29, 2020 edition of the Official State Gazette -BOE- published Royal Decree-Law 16/2020, of April 28, 2020 on procedural and organizational measures to confront COVID-19 in the justice system, aimed primarily at getting the justice system ready for a return to normal operations by the courts and tribunals, finding a quick way through the build-up of proceedings suspended by the declaration of the state of emergency, and adopting measures to cope with an increase in lawsuits as a result of the extraordinary measures that have been adopted and of the economic climate arising
In this week’s update: an update from the Parker Review on board ethnic diversity, the Investment Association sets out its 2020 priorities and a few other items.
2019 has been a busy year for restructuring specialists. Although the UK economy narrowly avoided a recession, a combination of continued domestic and international political uncertainty, decreased consumer confidence and challenging conditions in certain sectors has meant that a number of businesses have gone through restructurings and, in some high-profile cases, insolvency processes during the year.
In this week’s update: The court finds that selfdealing by a director and a share buyback were void, the PERG report on compliance with the Walker Guidelines, the BVCA and EY review private equity portfolio company performance, the QCA reports on AIM company corporate governance and a few other items.
Court confirms self-dealing by director was void
Being involved with a company which is experiencing financial difficulties is clearly a stressful experience for directors. As well as having to deal with the operational consequences of the company’s distress, directors must ensure that they comply with their duties and obligations under the Companies Act 2006 (CA2006) and the Insolvency Act 1986 (IA1986). Directors of listed entities are in a particularly difficult position, as in addition to those duties they must comply with their obligations to the markets.
Directors’ duties
On September 10, 2019, Madrid Commercial Court number 6 delivered a decision arguing that it was necessary to examine whether the prior notice under article 5 bis of the Insolvency Law stemmed from steps taken to prepare or perform serious and effective negotiations.
El Tribunal Supremo dictó el pasado 2 de julio una sentencia pionera en la que se abordan los requisitos para conseguir la liberación de deudas a través del mecanismo de la llamada segunda oportunidad. En nuestro ordenamiento se conoce a la segunda oportunidad como beneficio de exoneración del pasivo insatisfecho (BEPI) y es una herramienta que pueden utilizar las personas físicas (empresarios, autónomos o consumidores fuertemente endeudados) para liberarse de sus deudas, que les serán condonadas, permitiéndoles emprender nuevos proyectos.