This article provides an essential update for insolvency practitioners on insolvency changes in 2015 and the proposed changes in 2016.

2015 Changes                

The Small Business, Enterprise and Employment Act 2015

In recent times, the legal profession has undergone widespread changes at the bequest of previous governments. The most draconian measures have been in relation to the expense of professional services. These include a budgeting and costs management process which is the subject of judicial approval. In essence, service provider’s fees and expenses are estimated and capped in advance of them being incurred.

The Pension Protection Fund (PPF) has issued a guidance note on Insolvency Practitioner remuneration which will apply where the insolvent company has a Defined Benefit Pension Scheme. The guidance note applies to pre and post appointment work.

The Guidance Note can be found here.

The Supreme Court has handed down its judgment in the case of The Trustees of Olympic Airlines SA Pension and Life Assurance Scheme –v- Olympic Airlines SA. Pitmans’ Trustee company, PTL, were the Appellants.

The question at issue was what connection must a foreign company, that has its Centre of Main Interests (COMI) in another EU country, have within the United Kingdom, to entitle an English Court to wind it up.

In the recent decision of Horton v Henry [2014] EWHC 4209 (Ch) the High Court held that a Bankrupt’s unexercised rights to draw his pension did not represent income to which the Bankrupt was entitled within the meaning of section 310(7) of the Insolvency Act 1986 and so refused to make an Income Payments Order. This contradicted the controversial decision in Raithatha v Williamson [2012] EWHC 909 (Ch) and has created uncertainty as to which is the correct position. The Horton case is being appealed.

The High Court has held that a bankrupt’s unexercised rights to draw his pension did not represent income to which the bankrupt was entitled and so refused to make an income payments order, contradicting the controversial decision in Raithatha v Williamson which held that a bankrupt’s right to draw income from a personal pension may be subject to an income payments order even if the individual has yet to draw his pension.

Horton v Henry [2014] EWHC 4209 (Ch)

This article provides an essential update for insolvency practitioners on the proposed Insolvency Rules 2015 and the end of the insolvency exemption on Conditional Fee Agreements.

The end of the CFA?

At the end of October the Pension Protection Fund announced that it had come to an agreement with Monarch Airlines and the Pensions Regulator to accept the Monarch Airlines Limited Retirement Benefit Scheme into a PPF assessment period. The agreement, reached after discussions between the parties and the Trustees of the Scheme will enable the airline to restructure its business and accept £125m in new capital and liquidity facilities from Greybull Capital LLP in return for a 90 per cent shareholding.

Het einde van 2014 nadert met rasse schreden. Om een liquidatie, juridische fusie of splitsing voor het einde van het jaar te voltooien, dienen bepaalde termijnen in acht te worden genomen. Hieronder treft u een procesbeschrijving van deze frequent gebruikte herstructureringsinstrumenten aan.

Fusie / splitsing

Op 3 september 2014 heeft de regering een wetsvoorstel (het ‘Wetsvoorstel”) ingediend waardoor een bestuursverbod kan worden opgelegd voor maximaal 5 jaar aan bij faillissement betrokken personen aan wie een verwijt kan worden gemaakt voor de oorzaak van dat faillissement.

Inleiding

Op dit moment bestaat er al een aantal civielrechtelijke instrumenten om fraude of wanbeleid bij rechtspersonen aan te pakken zoals: