Summary
July, 2023 For Private Circulation - Educational & Informational Purpose Only A BRIEFING ON LEGAL MATTERS OF CURRENT INTEREST KEY HIGHLIGHTS ⁎ Delhi High Court: An arbitration clause contained in a contract perishes upon its novation. * NCLT Hyderabad rejects resolution plan for being incompliant with Regulation 36B 4(A) of the CIRP Regulations. * Madras High Court rejects enforcement of a foreign arbitration award which was passed without considering FEMA violations and fraud in share valuations. * NCLAT: NCLTs and NCLAT have the power to recall their judgments.
Companies registered in Myanmar can be voluntarily wound up by its shareholders or creditors or compulsorily wound up by a court order. The voluntary winding up is more common and easier than the compulsory winding up. The key legislations governing the company liquidation are the Insolvency Law 2020 and the Insolvency Rules 2020.
Procedures
On 11 July 2023, Mr Justice Michael Quinn delivered his judgment in the matter of Mac-Interiors Limited (High Court Record No. 2023/90 COS) (the “Company”), which confirmed and clarified ‘a significant and previously undecided point’ regarding the jurisdiction of the Irish courts to appoint an Examiner to a non-EU registered company with its centre of main interests (“COMI”) in Ireland. McCann FitzGerald act for the Company which brought the application.
Five years after the collapse of construction company giant, Carillion PLC, its former Chief Financial Officer (CFO) Zafar Khan has been disqualified from acting as a company director, or being concerned in its management, for 11 years. This is just 4 years short of the maximum period of 15 years, reflecting the seriousness of the allegations against him. The Insolvency Service accepted an undertaking from Mr Khan in settlement of its action against him.
Claimant law firms are working hard to develop routes for holding parent companies and their boards responsible for trading activities carried out through subsidiary companies. The recent decision in Aston Risk Management v Jones and others provides clarity on when a registered director of a parent company can be found to be a de facto director of an operating subsidiary.
Aanleiding en inhoud TWTT
Een turboliquidatie is de ontbinding op eigen initiatief van een rechtspersoon, waarbij – als de rechtspersoon op het tijdstip van ontbinding geen baten heeft – het tijdstip van de ontbinding samenvalt met de beëindiging van de rechtspersoon. In dat geval hoeft er dus niet te worden vereffend, want er zijn geen baten om te vereffenen. Let op: het voorgaande geldt dus ook als de rechtspersoon nog wel lasten heeft.
On 5 July 2023, the High Court sanctioned the restructuring plan proposed by Prezzo Investco Limited (theCompany) despite opposition from HMRC.
Yes is the answer! On 12 July 2023, the Parliamentary Joint Committee on Corporations and Financial Services published its report regarding corporate insolvency in Australia.
Objective of the inquiry
The committee’s inquiry assessed how effective the current corporate insolvency regime is at providing benefits to, and protecting, stakeholders as well as the Australian economy. It looked at a number of aspects including:
Key Legislations
(1) The Insolvency Law 2020; (2) The Insolvency Rules 2020 issued by the Union Supreme Court of Myanmar; and (3) The Notification No. 95/2020) dated 3rd November 2020 of the Directorate of Investment and Company Administration (“DICA”).
Voluntary Winding Up
The shareholders of a company can voluntarily wind up the company by holding a general meeting and passing a resolution to wind up the company under Section 147(a) of the Insolvency Law.