On 5 April 2022, the UK government published the first review of the Insolvency (England and Wales) Rules 2016 (the Rules) (the Report). It is evident from the Report that many respondents took the opportunity to raise issues faced in practice, not just with the Rules, but with the operation of the insolvency legislation in general.

In the context of the EU Directive 2019/1023/UE of 20 June 2019 (“Directive”) and in the aftermath of the Covid crisis, France has reformed its insolvency legislation. The purpose of the legislation is both to implement the requirements of the Directive into the French legislation, but also to tackle the consequences of the Covid crisis and endorse some of the measures that have been taken in this respect and have brought the number of insolvency proceedings to a historic low, as well as other measures.

Directors' Duties and Related Matters, in the Context of COVID-19

EMEA UK 2 July 2021

Scope and Purpose of This Note

This note summarises the duties that directors of companies incorporated in England and Wales are subject to.

This note explains those duties, and matters that directors should consider in relation to them, in the context of the COVID-19 pandemic.

Cass. com., 10 mars 2021, n° 19-22.385

L’article L. 622-24 du Code de commerce est clair : tout mandataire ou préposé du créancier peut effectuer pour le compte de celui-ci une déclaration de créance au passif d’un débiteur à l’encontre duquel une procédure collective a été ouverte.

En effet, cet article prévoit notamment (alinéa 2) que :

The UK left the European Union (EU) on 31 January 2020 and the transition period in which EU rules continued to apply ended on 31 December 2020. As such, for insolvency proceedings opened in England after 31 December 2020, they will no longer benefit from automatic recognition in an EU member state.

Therefore, insolvency practitioners (IP) of a company with multijurisdictional operations or assets will be required to make an application in the relevant EU jurisdiction to have proceedings recognised in that jurisdiction.

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-1

A number of recent extensions and changes to temporary measures have been announced that impact insolvency practice and procedure, what are they?

In Marex Financial Ltd v Sevilleja [2020] UKSC 31, the UK Supreme Court has opened the way for a judgment creditor to sue a controller of companies who denuded the companies and placed them in liquidation to defeat the creditor's enforcement of a US$5 million judgment. The Court of Appeal had ruled that the creditor was caught by the so-called "reflective principle" that prevents shareholders recovering losses suffered in common with the company. Singapore, Hong Kong, Australia and other common law jurisdictions are almost certain to follow suit.

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.

On 20 May 2020, the UK Government introduced the Corporate Insolvency and Governance Bill (the “Bill”) to the House of Commons. The aim of the Bill was temporarily to amend corporate insolvency laws to give companies the best possible chance of weathering the storm of the COVID-19 pandemic. One of the significant me