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    English court considers directors' "creditor duty" in context of failed tax avoidance scheme
    2023-09-06

    In Hunt v Singh, the Court referred to the Supreme Court's landmark decision in BTI v Sequana (see our alert) in deciding when the directors' duty to creditors arose.

    Background

    Marylebone Warwick Balfour Management Limited (the Company), entered a tax avoidance scheme between 2002 and 2010 which the directors, on professional advice, believed to be valid.

    Filed under:
    United Kingdom, Company & Commercial, Insolvency & Restructuring, Litigation, Tax, Taylor Wessing, Tax avoidance, Insolvency
    Authors:
    Louise Jennings , Isabelle Moisy
    Location:
    United Kingdom
    Firm:
    Taylor Wessing
    Carillion NED “test case” proceedings dropped - a reminder about D&O insurance
    2023-11-02

    The Insolvency Service (IS), acting on behalf of the Secretary of State for Business and Trade, commenced disqualification proceedings against five former non-executive directors (NEDs) of Carillion plc in January 2021, following the compulsory liquidation of the Carillion Group in January 2018. Last month on the eve of trial, the IS discontinued its disqualification proceedings against the NEDs.

    Filed under:
    United Kingdom, Insolvency & Restructuring, Insurance, Litigation, Herbert Smith Freehills LLP, Financial Conduct Authority (UK), Carillion, Insolvency Service (UK)
    Authors:
    Greig Anderson
    Location:
    United Kingdom
    Firm:
    Herbert Smith Freehills LLP
    Carillion director disqualification proceedings - Insolvency Service drops proceedings against non-executive directors in so-called “test case”
    2023-10-20

    On the eve of trial, the Insolvency Service (IS), acting on behalf of the Secretary of State for Business and Trade, has discontinued disqualification proceedings brought in January 2021 against five former non-executive directors (NEDs) of Carillion plc. The trial, which had been listed for around 13 weeks (and originally as long as 6 months) had been due to start on Monday 16 October 2023.

    Filed under:
    United Kingdom, Insolvency & Restructuring, Litigation, Herbert Smith Freehills LLP, Corporate governance, Companies Act 2006 (UK), Financial Conduct Authority (UK), Insolvency Service (UK)
    Authors:
    John Whiteoak , Natasha Johnson , Richard Mendoza , Peter Thompson
    Location:
    United Kingdom
    Firm:
    Herbert Smith Freehills LLP
    When informal workouts don’t work out: English High Court rules bank that lent support to restructuring did not dishonestly assist in putting assets beyond creditors’ reach
    2023-10-11

    In the current economic climate, more and more companies are getting into financial difficulties, informal workouts by debtor companies, with support from certain creditors, seem to be increasingly common.

    Filed under:
    United Kingdom, Banking, Insolvency & Restructuring, Litigation, Herbert Smith Freehills LLP
    Authors:
    Gareth Thomas , Jojo Fan , Peter Ng , Grace Lee
    Location:
    United Kingdom
    Firm:
    Herbert Smith Freehills LLP
    Directors' Duties Under English Law — How to Lead in Difficult Times
    2022-07-01

    Elon Musk recently said he has a "super bad feeling" about the economy, pithily declaring what most financial commentators have been predicting in more technical terms.

    Filed under:
    United Kingdom, Company & Commercial, Insolvency & Restructuring, Litigation, Katten Muchin Rosenman LLP, Coronavirus, UK Supreme Court
    Authors:
    Sonya Van de Graaff , Prav Reddy , Mark Johnson
    Location:
    United Kingdom
    Firm:
    Katten Muchin Rosenman LLP
    English Court confirms 'substitution first, standing later' approach to winding up petitions
    2023-10-03

    The English court has (for the first time) given guidance on the long-established practice of substituting a creditor as petitioner in a winding up petition and hearing argument about the creditor’s standing later.

    Background

    In March 2021, Citibank petitioned to wind up Liberty Commodities (LCL). The petition was supported by two creditors, White Oak and NPS. Citibank settled with LCL and applied to dismiss the petition. The supporters applied to be substituted.

    Filed under:
    United Kingdom, Insolvency & Restructuring, Litigation, Taylor Wessing
    Authors:
    Nick Moser
    Location:
    United Kingdom
    Firm:
    Taylor Wessing
    English court considers directors' "creditor duty" in context of failed tax avoidance scheme
    2023-09-06

    In Hunt v Singh, the Court referred to the Supreme Court's landmark decision in BTI v Sequana (see our alert) in deciding when the directors' duty to creditors arose.

    Background

    Marylebone Warwick Balfour Management Limited (the Company), entered a tax avoidance scheme between 2002 and 2010 which the directors, on professional advice, believed to be valid.

    Filed under:
    United Kingdom, Company & Commercial, Insolvency & Restructuring, Litigation, Tax, Taylor Wessing, Tax avoidance, Insolvency
    Authors:
    Louise Jennings , Isabelle Moisy
    Location:
    United Kingdom
    Firm:
    Taylor Wessing
    Directors' Duties Under English Law — How to Lead in Difficult Times
    2022-07-01

    Elon Musk recently said he has a "super bad feeling" about the economy, pithily declaring what most financial commentators have been predicting in more technical terms.

    Filed under:
    United Kingdom, Company & Commercial, Insolvency & Restructuring, Litigation, Katten Muchin Rosenman LLP, Coronavirus, UK Supreme Court
    Authors:
    Sonya Van de Graaff , Prav Reddy , Mark Johnson
    Location:
    United Kingdom
    Firm:
    Katten Muchin Rosenman LLP
    English Court confirms 'substitution first, standing later' approach to winding up petitions
    2023-10-03

    The English court has (for the first time) given guidance on the long-established practice of substituting a creditor as petitioner in a winding up petition and hearing argument about the creditor’s standing later.

    Background

    In March 2021, Citibank petitioned to wind up Liberty Commodities (LCL). The petition was supported by two creditors, White Oak and NPS. Citibank settled with LCL and applied to dismiss the petition. The supporters applied to be substituted.

    Filed under:
    United Kingdom, Insolvency & Restructuring, Litigation, Taylor Wessing
    Authors:
    Nick Moser
    Location:
    United Kingdom
    Firm:
    Taylor Wessing
    English court considers directors' "creditor duty" in context of failed tax avoidance scheme
    2023-09-06

    In Hunt v Singh, the Court referred to the Supreme Court's landmark decision in BTI v Sequana (see our alert) in deciding when the directors' duty to creditors arose.

    Background

    Marylebone Warwick Balfour Management Limited (the Company), entered a tax avoidance scheme between 2002 and 2010 which the directors, on professional advice, believed to be valid.

    Filed under:
    United Kingdom, Company & Commercial, Insolvency & Restructuring, Litigation, Tax, Taylor Wessing, Tax avoidance, Insolvency
    Authors:
    Louise Jennings , Isabelle Moisy
    Location:
    United Kingdom
    Firm:
    Taylor Wessing

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