We summarise the background and outcomes of Case C-73/20 – Oeltrans, an important ruling for liquidators faced with the avoidance of a third party payment and a conflict of laws.
The facts
Sky Building Ltd (the Company) owned a development property (the Property) and granted leases for 145 flats. Leasehold contracts were exchanged in relation to 143 flats, giving rise to purchasers' liens. Some of the purchasers' liens (securing liabilities of approximately £6.5 million) were protected by registration of notices against the title to the Property, conferring a priority interest in the event of a sale of the Property.
In addition to new legislation mentioned elsewhere in this round-up (see links to other sections), commercial and tech businesses and in-house counsel should note:
The Corporate Insolvency and Governance Act
On 30 July 2020, the UK Insolvency Service published its quarterly insolvency statistics. Notably:
According to German law, managing directors of limited liability companies are personally liable for payments made despite insolvency. Directors may even be liable when third parties make payments to the insolvent company's current account that has a negative balance because such payment will constitute a payment by the insolvent company to the bank
Die Hotelindustrie gehört zu den Branchen, die von der Corona-Krise am schwersten getroffen werden. Mitunter geht es um das schlichte Überleben der betroffenen Unternehmen. Wir möchten Ihnen in einem interdisziplinären Webinar einige der drängendsten Fragen beantworten, die Ihnen helfen sollen, durch diese herausfordernde Zeit durchzukommen.
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On 14 November 2018, the Court of Justice of the European Union issued a judgment on jurisdiction for avoidance actions under the previous Insolvency Regulation.
In its decision of 12 February 2009, the Court had already established that the courts of the Member State with jurisdiction to open insolvency proceedings are competent for all the actions directly related to the insolvency.
Key points
To attribute a director’s fraud to a company, the company must be a one-man company
A one-man company requires no innocent directors or shareholders
The Facts
Singularis Holdings Ltd (the “Company“) was set up to deal with the personal assets of Mr Al Sanea. Mr Sanea was at all the times the sole shareholder of the Company, though he was only one of a number of directors of the Company.
Key points
Information obtained by compulsion can be shared between officeholders of connected estates (parent/subsidiary)
There must, however, be a possibility that there will be a surplus in the subsidiary estate
The prospect must be real as opposed to fanciful
The facts
In Rushbrooke UK Ltd (the Company) v Designs Concept Ltd (Designs) [2022] EWHC 1110 (Ch), the Court struck out injunction proceedings to restrain the presentation of a winding up petition as the instructing director did not have Company authority.
Background