Often, debtors’ shares in companies are subject to seizure in security or enforcement proceedings. But the debtor does not lose its status as a shareholder in the company after the shares are seized, and the creditor still remains a third party with respect to the company. Thus the debtor may continue to exercise the corporate rights attached to the seized shares, making it difficult for the creditor to satisfy its rights.

Government-backed loan schemes implemented to assist ailing businesses during the pandemic have been subject to widespread abuse. An estimated £4.9bn of the £47bn invested in business support loans during the life of the pandemic is thought have been lost to fraud and up to £17bn may never be repaid. In response to concerns about potential abuse of limited company liability, new legislation received Royal Assent on 15 December 2021 - The Rating (Coronavirus) and Directors Disqualification (Dissolved Companies) Act 2021 (the Act).

Creditors seeking to execute on debtors’ assets to collect on judgments face legal limits under Illinois law, which lets a debtor claim certain types of property as exempt from enforcement of a judgment, wage deduction order or other collection measure. A creditor’s attorney must conduct a thorough examination of a judgment debtor’s assets to determine which assets are available in whole or in part as sources of payment of the amount due.

A Terceira Turma do Superior Tribunal de Justiça (STJ) deu, por unanimidade, parcial provimento ao Recurso Especial n°. 1.933.995 – SP (REsp), interposto em face da decisão proferida pelo Tribunal de Justiça de São Paulo (TJSP), reafirmando o entendimento de julgados anteriores no sentido de que os créditos do proprietário fiduciário não estão sujeitos aos efeitos da recuperação judicial, independentemente da relação do fiduciante ou do fiduciário com o bem imóvel dado em garantia ou com a própria empresa em recuperação.

Contributed by William Malouf and Alexandra Stead, Senior Associates, Baker McKenzie

Introduction

The practice area of bankruptcy & insolvency is in a constant state of flux. 2020 and 2021 saw some of the biggest reforms to our insolvency framework in 30 years, as businesses struggled financially with the fallout from the COVID-19 pandemic.

Au Québec, le droit de la consommation évolue régulièrement et la Loi sur la protection du consommateur (L.P.C.) continue de faire l’objet de plusieurs décisions des tribunaux chaque mois.

À l’occasion de la publication de ce nouveau bulletin de notre série en droit de la consommation, nous présentons les développements récents dans ce domaine sous l’angle des décisions des quelque 12 derniers mois de la Cour d’appel du Québec, qui apportent un éclairage sur des règles de la L.P.C.

The English High Court has sanctioned Smile Telecom Holding Limited's (Smile) restructuring plan, despite there being no parallel restructuring proceedings in Mauritius, the place of Smile's incorporation.

Background

Consumer law in Québec remains in constant evolution, and the Consumer Protection Act (CPA) continues to be the subject of many court decisions each month.

In this new article in our series on consumer law, we present recent developments in this area from the perspective of Québec Court of Appeal decisions over the past 12 months, which shed some light on the rules of the CPA.

OVERVIEW

Legislation