Not all residential tenancies will be in the name of an individual. Sometimes it will be a company looking to take out the tenancy in their own name. Generally, this will be for the use of the one of the directors and their family. Often these sorts of agreements are seen as beneficial to many landlords who are under the impression that the company will be prompt with payment and ultimately good for the money. Whilst this can certainly be the case, it does not always work out this way.
How is the function of a company’s separate personality altered by insolvency? And to what extent may that give rise to an action in civil fraud? Nicola Sharp of Rahman Ravelli outlines the situation.
Since the end of the 19th century and the decision in Salomon v A Salomon and Co Ltd [1897] AC 22, it has been settled law that a company has its own separate personality. But as company law and insolvency law have evolved, the function of the company’s separate legal personality has developed.
Introduction
Where a British Virgin Islands company is struck off the register, its directors and members cannot carry on the company's affairs, commence or defend legal proceedings in the name of the company, or deal with the assets of the company.
In late December, the U.S. District Court for the District of Delaware issued an opinion in In re: Mallinckrodt PLC affirming the Mallinckrodt bankruptcy court's November 2021 decision that the debtor could discharge certain post-petition, post-confirmation royalty obligations for the sale of the company's Acthar gel.
The district court's affirmation serves as a reminder to holders of intellectual property that a debtor's fresh start under the U.S. Bankruptcy Code could trump royalty obligations that are found to be contingent claims arising as of the time of the transaction.
When a company files for bankruptcy protection, Section 541 of the Bankruptcy Code creates an estate comprised of "all legal and equitable interest of the debtor in property." On July 15, 2022, Celsius Network LLC filed for relief under Chapter 11 of the United States Bankruptcy Code. At the time, it had approximately 600,000 accounts in its "Earn Program" which allowed account holders to earn interest on certain cryptocurrency deposits. These "Earn Accounts" held over $4 billion in cryptocurrency assets.
Introduction and Background
The Supreme Court of India (“Supreme Court”) in the case of Sabarmati Gas Limited vs. Shah Alloys Limited1 held that (a) in an application under Section 7 or 9 of the Insolvency and Bankruptcy Code, 2016 (“IBC”), the period of limitation would be 3 (three) years from the date when the right to apply accrues, i.e.
The corporate insolvency landscape in India has been refocused with the Insolvency and Bankruptcy Code, 2016 (“IBC”) in the spotlight. Enacted in May 2016, the IBC has been regarded as a game-changing legislation for insolvency resolution.[1] With the shift to a creditor-centric approach from a debtor-in possession model which seemingly had failed, the IBC strives to conclude a corporate insolvency resolution process (“CIRP”) with a resolution plan considered viable by its creditors, failing which the corporate entity faces liquidation.
On 23 November 2022, the Regional Court of Munich ruled that shareholders' damages claims for breach of capital markets law rank as equity and not as general unsecured claims in the Wirecard insolvency. As a result, the shareholders can only recover from the insolvent estate in the unlikely event that all insolvency creditors' claims are fully satisfied.
The decision
The Grand Court of the Cayman Islands has issued its first judgment appointing Restructuring Officers under the new section 91B of the Cayman Islands Companies Act, which came into force on 31 August 2022.
Introduction