This week's issue has a strong ESG focus. We cover the Senate Committee's report into the government's Bill to overhaul the existing 'safeguard' mechanism, the outcomes of the ACCC's greenwashing sweep and the ACCC's enforcement priorities for 2023/24. On the financial services front we provide an update on the status of the proposed FAR (which would expand on and replace the existing BEAR). We also provide an update on the progress of measures to further 'modernise' Corporations Act requirements and more…
Liquidators and creditors should be aware of the High Court's analysis of the limits of set-off under s 553C of the Corporations Act 2001 (Cth).
There are several costs associated with presenting a creditor's petition for sequestration (bankruptcy) in Scotland. As you would expect there are court dues for presenting the petition, currently at £122, as well as sheriff officer and legal fees.
A predicted wave of insolvencies on the horizon has been a recurring theme in the UK press since the start of the first Covid-19 lockdown. Most people would have predicted that forced closure of businesses and the restriction on consumers' ability to spend would lead to an increase in business and personal insolvency numbers. In reality, the wave didn't appear - at least not yet. In this blog we discuss the reasons why and whether the trends we are seeing might suggest a wave is coming in 2023.
What stopped the wave?
When an individual or company purchases property in England or Wales, the legal title will transfer once the purchaser is listed as the registered proprietor at the Land Registry. However, what happens when, pending the registration of the legal interest, the seller company (who is still the registered proprietor) is dissolved? This is a risk seldom contemplated when purchasing property, but can have important consequences for the title of the property.
What steps should directors take when dealing with challenges to their company's solvency? We provide a high-level guide to the legal framework, looking at directors' general duties in an insolvency context and how the safe harbour defence to insolvent trading applies.
What suggests a company may be financially distressed? What are directors' legal obligations? At what point should they seek advice?
Our guide explains the law, to help directors understand what they need to do.
Directors' general duties in an insolvency context
On 24 February 2022, Russia invaded Ukraine in a major escalation of the conflict between the countries that began in 2014. The invasion by Russia was swiftly followed by international condemnation and a raft of sanctions which imposed financial, trade and other restrictions on Russia.
The Coronavirus (Recovery and Reform) Scotland Act was passed by the Scottish Government on 28 June 2022 and enacted on 10 August 2022 (the "Act"). It makes two key changes to insolvency and diligence in Scotland.
Bankruptcy floor limit
In Scotland claims (e.g. the right to payment) are currently transferred by assignation followed by intimation (i.e. notice) of the transfer to the party which is under an obligation to perform the obligation (e.g. making a payment).
As regular readers of our blogs will know, a group claims procedure came into force in Scotland on 31 July 2020.