The Government recently announced that it plans to introduce emergency changes to current UK insolvency law to ease the pressure on businesses (and their directors) struggling as a result of the coronavirus pandemic.
The Business Secretary said that the measures will be implemented ‘at the earliest opportunity’, although with Parliament not scheduled to return from recess until 21 April 2020 we may see some delay before the measures become law.
The Insolvency Service describes itself as the government agency that provides public services to those affected by financial distress or failure. It's core purpose is to deliver economic confidence by supporting those in financial distress, tackling financial wrongdoing and maximising returns to creditors. In order to achieve that purpose, the Insolvency Service utilises its investigation and enforcement powers to tackle financial or other misconduct.
Introduction
Privilege and insolvency
A recent Court of Appeal decision means insolvency practitioners should think twice before instructing solicitors. The case confirmed that whilst there is nothing wrong in principle with solicitors acting for both a trustee in bankruptcy or liquidator and a creditor of the bankrupt or insolvent company, conflicts can arise. Where they do, solicitors may be required to cease acting for the creditor.
Gowling WLG's finance litigation experts bring you the latest on the cases and issues affecting the lending industry.
Uncrystallised pension pot remains protected following bankruptcy
In Walchuk v. Houghton, the Ontario Court of Appeal held that the stay of all proceedings against a bankrupt pursuant to the Bankruptcy and Insolvency Act applies to a contempt motion brought by a judgment creditor where the contempt arises after the bankruptcy.
Vanquish Properties (UK) Ltd Partnership v Brook Street (UK) Ltd [2016] EWHC 1508 (Ch)
Vanquish, a developer, was a Limited Partnership under the Limited Partnerships Act 1907 with one General Partner, liable for all obligations of the business, and four Limited Partners.
It was granted an overriding lease by the City Corporation in the name of the Limited Partnership, “acting by” its General Partner. There was no mention of the four Limited Partners.
A version of this article was first published in The Law Society Gazette and Prime Resi.
Shlosberg v Avonwick Holdings Ltd & Ors [2016] EWHC 1001
Law firm Dechert LLP has been ordered to cease acting for the principal creditor of bankrupt Russian businessman, Mr Shlosberg, because it also acted for the trustees in bankruptcy, and accordingly had had access to documents subject to Mr Shlosberg's legal professional privilege.
Facts