The Insolvency and Bankruptcy Code, 2016 (Code) was introduced as a one stop solution for resolving insolvencies, which previously was a long-drawn process that did not offer an economically viable arrangement. In 2022, the Indian courts have been guided by the principal of ‘resolution of insolvency of debtor’ over ‘recovery by creditors’ and have refused insolvency applications where they found such application were for recovery of money rather for insolvency of the debtor.
In the current economic environment, directors will be fully focussed on avoiding any breach of their fiduciary duties, particularly if they are directors of companies experiencing or at risk of financial distress.
This client briefing provides a general overview of the duties of directors of Guernsey companies in these circumstances and is not comprehensive. We recommend that clients obtain specific legal advice in relation to any individual matter which may concern them.
Who are the Directors?
January, 2023 For Private Circulation - Educational & Informational Purpose Only Between the lines... A BRIEFING ON LEGAL MATTERS OF CURRENT INTEREST KEY HIGHLIGHTS ⁎ Delhi High Court: Invoking CIRP would not make the dispute non-arbitrable. ⁎ NCLAT: Section 96(1)(b) of the IBC does not stay any future liability or obligation. ⁎ NCLAT: The IBC does not provide for any look-back period on how far back fraudulent transactions can be investigated. ⁎ The changing contours of employment law in India. January, 2023 http://www.vaishlaw.com/ I.
Creditors and debt collectors may rest assured that they are not violating the Fair Debt Collection Practices Act (FDCPA) when sending debt-collection communications prior to any knowledge of a debtor’s bankruptcy filing. In Carrasquillo v.
Considering the new round of The practice concerning liability of controlling persons for debts of legal entities excluded from the unified state register of legal entities (EGRUL) following a decision from tax authority is being developed. In the past the Supreme Court and Constitutional Court of the Russian Federation took different views on this matter: from presumption of guilt for the controlling person to obligation of the creditors of the legal entity to monitor possible exclusion of such entity.
mourant.com 2021934/73089611/3 GUIDE Protected Cell Companies Last reviewed: January 2023 Contents Introduction 2 What is a PCC and what is it used for? 2 Advantages and disadvantages of a PCC 2 Formation of a PCC 2 What are cellular assets? 3 What are core assets?
Broadly, the end of life options for a solvent Cayman Islands company are either a voluntary liquidation or a strike-off. The appropriateness of either method will depend on the business history of the company and its current financial position. The company should ideally have no assets or liabilities before the commencement of either option.
Preliminary steps
Before commencing the dissolution process, it may be necessary to take some preliminary steps, such as ensuring that:
DO YOUR DIRECTORS HAVE SUFFICIENT TOOLS AVAILABLE TO ALERT THEM TO CIRCUMSTANCES THAT COULD INDICATE FINANCIAL DIFFICULTIES IN A COMPANY AND ASSIST THEM IN ANY FUTURE RESTRUCTURING DECISIONS?
Good Financial tools will enhance Directors' understanding the company's financial position and alert them to any early signs of potential financial difficulties.
FINANCIAL DIFFICULTIES
How is the function of a company’s separate personality altered by insolvency? And to what extent may that give rise to an action in civil fraud? Nicola Sharp of Rahman Ravelli outlines the situation.
Since the end of the 19th century and the decision in Salomon v A Salomon and Co Ltd [1897] AC 22, it has been settled law that a company has its own separate personality. But as company law and insolvency law have evolved, the function of the company’s separate legal personality has developed.
Introduction
Where a British Virgin Islands company is struck off the register, its directors and members cannot carry on the company's affairs, commence or defend legal proceedings in the name of the company, or deal with the assets of the company.