The following is a broad overview of the duties and liabilities of directors when their company is in financial difficulties. It is a general guide only and there will be variations according to the specific laws in each jurisdiction.
An intervening bankruptcy will not defeat a charging order where the bankruptcy was entered into in an attempt to frustrate the charge.
The court will not assist a former bankrupt to enforce his interests under an unlawful trust where the purpose of the trust initially had been to deprive the trustee in bankruptcy of the bankrupt's interest.
Gleave and others v The Board of the Pension Protection Fund [2008] EWHC 1099 (Ch)
The High Court ruled that calculations of employer debt by scheme actuaries cannot be challenged by insolvency practitioners unless there is evidence of fraud or error.
[2008] EWHC 1099 (Ch)
The High Court has ruled that calculations of employer debt by scheme actuaries cannot be challenged by insolvency practitioners unless there is evidence of fraud or error.
A recent court decision has finally clarified the law relating to bankruptcy after the conclusion of ancillary relief proceedings, after a significant period of uncertainty. The Court of Appeal in the case of Haines v Hill has decided that a property transferred to a wife in ancillary relief proceedings should, in the absence of fraud or collusion, remain safe even in the swift event of her former husband’s bankruptcy.
An agreement signed by a director on behalf of his company containing a promise by the company to pay for goods to be ordered in the future, rendered the director personally liable where he knew at the time of signing that the company was insolvent and had no prospects of becoming solvent.
The court will not always set aside a property transfer order in matrimonial proceedings where the party transferring the property, as part of a clean break order, becomes bankrupt shortly afterwards, and there are allegations of lack of consideration or transfer at an undervalue.
The 4th session of the committee of governmental experts on Intermediated Securities met in May 2007 to continue negotiation of the draft Convention. The Convention deals primarily with the rights of account holders in relation to intermediated securities - securities held through financial intermediaries.
The economic fallout from the COVID-19 pandemic will leave in its wake a significant increase in commercial chapter 11 filings. Many of these cases will feature extensive litigation involving breach of contract claims, business interruption insurance disputes, and common law causes of action based on novel interpretations of long-standing legal doctrines such as force majeure.