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    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
    Foreign judgment enforceable at common law despite legislative change making it unenforceable in state of origin
    2023-10-02

    The High Court has held that there is no common law rule preventing enforcement of a foreign judgment in England and Wales simply because it is not presently or fully enforceable in the relevant foreign jurisdiction.

    Filed under:
    United Kingdom, Insolvency & Restructuring, Litigation, Herbert Smith Freehills LLP, Employee Retirement Income Security Act 1974 (USA)
    Authors:
    Chris Bushell , Maura McIntosh
    Location:
    United Kingdom
    Firm:
    Herbert Smith Freehills LLP
    English High Court gives guidance on the so-called creditor duty where a company faces solvency-threatening claim
    2023-09-14

    When a company is in the so-called “twilight zone” approaching insolvency, it is well-established that the directors’ fiduciary duties require them to take into account interest of creditors (the so-called “creditor duty”).

    Filed under:
    Hong Kong, United Kingdom, Company & Commercial, Insolvency & Restructuring, Litigation, Herbert Smith Freehills LLP, High Court of Justice (England & Wales)
    Authors:
    Gareth Thomas , Jojo Fan , Peter Ng
    Location:
    Hong Kong, United Kingdom
    Firm:
    Herbert Smith Freehills LLP
    High Court considers creditor duties in face of solvency-threatening claims
    2023-09-04

    The judgement raises important questions for directors faced with substantial liabilities

    Filed under:
    United Kingdom, Company & Commercial, Insolvency & Restructuring, Litigation, Herbert Smith Freehills LLP
    Authors:
    Andrew Cooke , Richard Mendoza
    Location:
    United Kingdom
    Firm:
    Herbert Smith Freehills LLP
    The future of UK insolvency regulation: regulation of firms and a new public register
    2023-10-03

    On 12 September 2023, the government published its long-awaited response to its consultation on the future of insolvency regulation.

    The reforms will introduce:

    Filed under:
    United Kingdom, Insolvency & Restructuring, Taylor Wessing, Insolvency, Insolvency Service (UK)
    Authors:
    Louise Jennings
    Location:
    United Kingdom
    Firm:
    Taylor Wessing
    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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