Financial support for businesses impacted by COVID-19, legislative provisions (such as the statutory relaxation to insolvent trading liability) and general creditor leniency have resulted inhistorically low insolvency appointments during the last two years.
Dale G. Higer is an attorney and a long-time Commissioner for the State of Idaho on the Uniform Law Commission. His newest role is Chair of the Commission’s newly-formed Study Committee on Assignments for Benefit of Creditors.
What follows is Mr. Higer’s report on the Commission and on the work of the newly formed Study Committee.
Uniform Law Commission
Morton as liquidator of MJ Woodman Electrical Contractors Pty Ltd v Metal Manufactures Pty Limited [2021] FCAFC 228
The Full Court of the Federal Court confirms that a statutory set-off under s 553C(1) of the Corporations Act2001 (Cth) is not available against a liquidator’s claim for the recovery of an unfair preference under s 588FA of the Act.
Background
Company insolvencies have recently hit a record high and are on an upward trend in the aftermath of the COVID-19 pandemic. This means that we are likely to see an increase in claims against directors, especially in light of new legislation that expands the government’s powers of investigation.
Record high insolvencies
New requirements brought in during the Covid-19 pandemic have added to the potential procedural pitfalls facing creditors seeking a winding up order in recent months. They have also led to quite a lot of adjourned hearings and delays.
In this week’s update: an updated checklist for managing an electronic signing on a corporate or commercial transaction, the FCA and AIM are to bring an end to temporary relaxations introduced due to Covid-19 and the court orders a listed company to be wound up on “just and equitable grounds.
Good afternoon.
Following are this week’s summaries of the Court of Appeal for Ontario for the week of March 21, 2022.
Areas of law covered in the cases this week included bankruptcy and insolvency (setting aside discharge from bankruptcy and after-acquired property), municipal liability for building inspections, two child protection decisions, guarantees and a partnership dispute.
Wishing everyone an enjoyable weekend.
Table of Contents
Civil Decisions
Chan Seung Bun v Wong King Fai Joe and Another[2021] HKCFI 3572
The Company was co-founded by the petitioner Mr. Chan Seung Bun (the “Petitioner”) and the late 1st Respondent (“R1”), now represented by the joint executrices of the estate (the “Executrices”) in 2013. It was not in dispute that the Company was a quasi-partnership established based on mutual trust and confidence between the Petitioner and R1. The Company had been profitable since its establishment.
In the recent case of Re Joint and Several Liquidators of Ozner Water International Holding Ltd 浩澤淨水國際控股有限公司 (In Liquidation) [2022] HKCU 940, the Hong Kong Court of First Instance (Hong Kong Court) granted an application by the liquidators (Liquidators) of Ozner Water International Holding Ltd. (Company) for a letter of request for recognition and assistance (Letter of Request) to be issued to the Shenzhen Intermediate People’s Court (Shenzhen Court).
This month sees a statement by the Charity Commission on the Ukraine crisis and how this impacts charities, and a factsheet released by the UK government on the impact the war has had on energy.
There are also some very interesting articles regarding support for domestic abuse victims to how to deal with Social Housing complaints.
Finally there is a press article on TLT’s involvement in the innovative second modular deal for Town and Country Housing and Legal and General Modular Homes.