Under Dutch law each partner of a partnership (other than a limited partner) is severally liable for liabilities of the partnership. The Dutch Supreme Court has recently rendered two important judgments with respect to the liability of partners in a partnership and the consequences thereof if the partnership is declared bankrupt.
In January 2015, the Government published legislation which proposes to increase the level of debt necessary for a creditor to present a bankruptcy petition to £5,000 from 1 October 2015 (Draft Insolvency Act 1986 (Amendment) Order 2015). This represents a significant increase on the current law which allows a petition to be presented on a debt of just £750. It has apparently been proposed to dissuade creditors from using this arguably aggressive mechanism to collect relatively low level debts.
Debt Relief Orders
In Dutch case law it has long been held that the bankruptcy of a Dutch partnership automatically entails the bankruptcy of each of the partners. In a decision that explicitly breaks with previous case law, the Dutch Supreme Court found on 6 February 2015 that the bankruptcy of a Dutch partnership does no longer entail the bankruptcy of its partners.
1. Introduction
On 21 November 2014 the draft Dutch Implementation Act for the European Framework for the Recovery and Resolution of Banks and Investment Firms (the "Implementation Act") and draft guidelines were published for public consultation purposes. The Implementation Act is designed to implement the Bank Recovery and Resolution Directive ("BRRD") and to apply the Single Resolution Mechanism ("SRM").
Introduction
Supreme Court of the Netherlands 11 July 2014 (ABN AMRO vs Berzona)
The Belgian Company Code provides for the possibility to dissolve and liquidate a Belgian company in a single step (en un seul acte/in één akte) (for more information, please see the June 2012 edition of this newsletter).
The Act of 25 April 2014 amending the Company Code with regard to liquidation procedure (the "Act") was published in the Belgian State Gazette on 14 May 2014 and entered into force on 24 May 2014. The Act amends one of the main requirements to proceed with dissolution and liquidation in a single step.
Costs are the price that creditors pay for an insolvency practitioner’s (“IP”) expertise and time in dealing with a trading bankrupt or insolvent business. However, where the assets are insufficient to meet the existing debts, the imposition of a practitioner’s fees and expenses being paid out in priority can send some “over the edge” and all practitioners have the scars to prove it. This article explores the developing general principles and major pitfalls and how to avoid them.
On 1 August 2013, an act amending the Business Continuity Act ("BCA") of 31 January 2009 entered into force.
The new act tackles the most common types of abuse under the Business Continuity Act and aims to reduce the number of bankruptcies following reorganisation governed by the BCA. The basic principles of the Business Continuity Act remain unchanged, however.