The current difficult economy is causing continual financial problems for many businesses. Directors are warned that entering into written agreements to make payments when they know their company is unable to meet its debts may equate to deceit under the terms of the Statute of Frauds (Amendment) Act 1828.

This could result in personal liability for the director who has made an implied representation about his company’s ability to pay.

Case law

This is the third article in our series about sponsor licences. This article focuses on the effect of insolvency on a sponsor licence.

Businesses are facing challenging times in the current economic downturn and insolvency is a real possibility for many, with 5,595 company insolvencies in the third quarter of 2022[1] alone.

If a business is on the brink of insolvency this will potentially have an impact on any sponsorship licences held within the company group. But what are the implications of this and what does it mean for sponsored employees?

This article first appeared in Accountancy Daily on 20 January 2023.

With supply chain problems, war in Europe and other issues leading to higher inflation and an increasingly uncertain economic outlook, this article explores the options available to companies experiencing financial distress.

At a time when, globally, insured businesses are under severe financial strain, the availability and extent of their insurance assets take on a new significance. It is significant not just for troubled businesses and their insurers, but also for third parties with potential or actual claims against those businesses.

Nicola Sharp of Rahman Ravelli considers a case that shows the courts’ reluctance to expand the jurisdiction of equity to award compound interest in common law claims.

A majority of the Supreme Court recently held that an insolvent company does not suffer any recoverable loss if payments are made from its bank accounts that discharge a debt owed by that company.  This decision adds to the growing case law on the Quincecare duty.

The claim against HSBC

Economic indicators tell us 2023 is set to be a challenging year with many countries still struggling to recover from the cost of the pandemic, combined with the impacts of the war in Ukraine driving up energy and food costs globally along with inflation gripping most western nations.

With the current economic difficulties affecting the tech sector, a number of companies who took Future Fund investment during the pandemic have been faced with the following realities:

The First-tier Tribunal (FTT) has made what is understood to be the first Remediation Contribution Order under the Building Safety Act 2022 (BSA) in connection with the remediation of building safety defects at a high-rise residential block at 9 Sutton Court Road, in London.

The latest insolvency statistics in the UK make for grim reading. Per the government’s official assessment, 1,964 corporate insolvencies took place in December 2022, 32% higher than in the same month in the previous year and 76% higher than the number registered three years previously pre-pandemic. With inflation and energy costs remaining high and government support rolling back, companies will be taking whatever steps they can to remain in business.