Different countries frame the exact description of the role of directors of a company in different terms. One feature is common to all – the obligation not to continue trading if a company is insolvent. Again, the detailed implications of doing so vary from one jurisdiction to another. However, this obligation not to continue wrongful trading is at the heart of trust in a market-based economic system.
As the COVID-19 pandemic and related global economic slowdown continues, corporate insolvencies are on the rise —and so too is the need for capital to pursue insolvency-related claims. Litigation and arbitration claims are often high value assets of insolvent estates and can be used to generate income during difficult financial times. However, substantial economic resources are usually required to realize their full value. This is where dispute financing provides an important tool at the insolvency practitioner’s disposal.
The COVID-19 pandemic and forced shutdowns have wrought a wave of financial distress globally for individuals and businesses, large and small. Three months in, the effects of the shutdowns have begun to materialize in the United States in the form of bankruptcy filings. According to a recent report, in May 2020 alone, some 27 companies reporting at least $50 million in liabilities sought court protection from creditors.
We all have been witnessing major steps taken by the government of UAE in order to prevent negative impact of coronavirus on our economy. COVID-19 has just made wide-scale interruption to various ventures both locally and internationally.
The High Court has held that s.236 of the Insolvency Act 1986 (“IA 1986”) does not have extra-territorial effect, so that the court is not generally permitted to make an order requiring a person outside the UK to produce books and papers and give an account of their dealings with an insolvent company: Re Akkurate Ltd (in Liquidation) [2020] EWHC 1433 (Ch).
In response to the COVID-19 outbreak, a number of insolvency laws have been updated. Our guidance outlines what this means to businesses in 17 countries: Austria, Belgium, Czech Republic, Denmark, Finland, France, Germany, Hungary, Ireland, Italy, Luxembourg, Netherlands, Poland, Slovakia, Spain, Sweden and the UK.
Samantha Gilbert speaks to compliance leaders from the healthcare, financial services, insurance, IT and commercial sectors on what to expect from the new “business as usual” and enforcement. Conduct reviews, increased regulatory scrutiny and long-term digitisation are some key issues for compliance teams to prepare for.
If you are an aviation professional in the COVID-19 era, you are likely learning about, or reacquainting yourself with, the restructuring process.
Lexology Pro Compliancetakes a look at some of the most informative articles published on Lexology this fortnight for compliance teams to stay up-to-date, including key guidance from regulators around the world and practical tips to help businesses adapt to a new normal.
The Australian government has taken swift action to enact new legislation that significantly changes the insolvency laws relevant to all business as a result of the ongoing developments related to COVID-19