Nicola Sharp of business crime solicitors Rahman Ravelli explains wrongful trading and the responsibilities placed on directors.
In response to the crisis caused by Covid-19, Business Secretary Alok Sharma announced in March a relaxation of the UK’s insolvency framework. Included in this – along with key payment safeguards for creditors and suppliers - was a temporary suspension of wrongful trading provisions with retrospective effect from 1 March, for an initial period of three months.
Syedur Rahman considers the significance of the April 2020 judgment in Byers & Ors V Samba
The latest hearing in the case of the US $300million claim of Byers & Ors v Samba Financial Bank took place over three days at the end of February 2020. The Court handed down its judgment on 8th April 2020.
This judgment is a significant one on several points:
Syedur Rahman of Rahman Ravelli examines a case that ruled on whether a Warning Notice can be issued while there is a liquidation stay on action and proceedings.
As the saga continues following the collapse of the facilities management and construction services group Carillion, so does the legal fall-out regarding the company and its regulation by the Financial Conduct Authority (FCA).
Nicola Sharp of Rahman Ravelli outlines a recent judgement that allowed a dissolved company to seek an order.
The judgement in the case of Yuzu Hair and Beauty Ltd (Dissolved) v Selvathiraviam [2019] is the first time that the High Court in England has given permission for a company that has been dissolved to apply for a freezing order.
The dissolved company applied for the continuation of a freezing order against its accountant. It had alleged that fraudulent activity by the accountant had led to the company being struck off the register at Companies House.