Introduction

Section 819 of the Companies Act 2014 operates to restrict directors of insolvent companies from being appointed or acting as a director or secretary of a company and from being concerned in or taking part in the formation or promotion of a company. Any director who falls foul of s.819 is subject to a mandatory period of restriction of 5 years. The primary purpose of s. 819 is to protect the public from persons who, by their conduct, have proven themselves unfit to hold the office and discharge the duties of a director.

Introduction

The Insolvency Service, has recently used its new powers to disqualify three former directors for dissolving their companies.

Introduction

A company experiencing financial difficulties is not necessarily a cause for alarm, as it is part of the natural cycle of a business generally. If, however, the directors are concerned about the financial position of their company, they should seek professional advice on the next steps to improve the company’s financial position and to protect themselves from any actions being taken against them personally for breach of their director’s duties.

I spoke on This Week on RTE Radio 1 about the same topic in the Summer of 2021. I took the view then that the pandemic-induced “zombie economy” would likely result in mass business failures when it finally ended. I did not know at the time that Government subsidies, including the Employment Wage Subsidy Scheme (EWSS) would continue for another twelve months and have only just come to an end.

Under the Insolvency and Bankruptcy Code, 2016 (Code), a trade creditor may initiate corporate insolvency resolution process if there is an unpaid operational debt above INR 10 million. An ‘operational debt’ under the Code means a claim in relation to goods and services. The insolvency courts have provided divergent views on the issue of whether rental dues or license fees for use of premises would qualify as an ‘operational debt’ under the Code.

Curtea Europeană de Justiție a Uniunii Europene a decis recent că Articolul 2 alineatul (2) și articolul 12 literele (a) și (c) din Directiva 2008/94/CE a Parlamentului European și a Consiliului din 22 octombrie 2008 privind protecția lucrătorilor salariați în cazul insolvenței angajatorului, astfel cum a fost modificată prin Directiva (UE) 2015/1794 a Parlamentului European și a Consiliului din 6 octombrie 2015, trebuie interpretate în sensul că se opun unei jurisprudențe naționale potrivit căreia o persoană care exercită în mod cumulativ, în temeiul

In a previous alert, we covered the Delaware Chancery Court’s decision in Stream TV Networks last year.

Conyers partner Jonathon Milne and associate Rowana-Kay Campbell in the Cayman Islands, and partner Anna Lin in Hong Kong, explain why the new Cayman restructuring regime is likely to be a welcome addition to the legislative landscape for prudent directors – particularly in light of current macro-economic conditions and the difficulties many companies are facing.

A much-anticipated corporate restructuring regime will be enacted in the Cayman Islands later this year through amendments to Part V of the Cayman Islands Companies Act.