In this client briefing we explain the law and process of appointment of Law of Property Act receivers. (June 2011)
This briefing looks at the options available to directors in the winding up of a solvent company.
In a decision that departs from an earlier Employment Appeal Tribunal (EAT) ruling, the EAT has ruled in OTG Ltd v Barke and others that normal TUPE principles always apply to administrations, including pre-pack administrations, because an administration does not constitute “bankruptcy proceedings or any analogous insolvency proceedings…instituted with a view to liquidation of the assets of the transferor”. This means that employees do automatically transfer to the buyer in an administration situation and thus are protected against unfair dismissal.
We reported on the High Court case of BNY Corporate Trustee Services Limited v Eurosail in August 2010 and last week's Court of Appeal decision provides further important guidance on the interpretation of the balance sheet insolvency.
OTG v Barke1 is the most recent judgement by the employment appeal tribunal (EAT) on whether the Transfer of Undertakings (Protection of Employment) Regulations 2006 (known as 'TUPE') apply to sales by companies in administration under schedule B1 to the Insolvency Act 1986.
When an employer leaves a multi-employer defined benefit pension scheme, an employer debt - a section 75 debt - may arise if the scheme was underfunded.
A section 75 debt is a debt due from an employer in a multi-employer defined benefit pension scheme to the trustees of the scheme.
Third parties associated with an employer may find themselves liable to contribute to the employer's occupational pension scheme.
A prominent aspect of the most recent wave of restructuring is the significant role often played by defined-benefited (DB) pension liabilities.
The High Court has in the past month ruled on two challenges to company voluntary arrangements (CVAs) on the grounds of unfair prejudice and material irregularity, reaching a different conclusion in each case.