Fraser Turner Limited v PricewaterhouseCoopers LLP and others [2019] EWCA Civ 1290
The Court of Appeal has upheld a decision striking out claims against administrators which alleged that they owed a duty to a specific creditor and were guilty of misfeasance.
Fraser Turner Limited (FT) was party to an agreement (“Royalty Agreement”) with London Mining plc (“LM”) and London Mining Company Ltd (“LMCL”) which provided for FT to receive a royalty in respect of iron ore produced at the Marampa mine. LMCL was a wholly owned subsidiary of LM.
The BEIS press release does not give much more by way of detail. However the notes to the release state:-
On 28 March 2020 the Secretary of State for BEIS, Alok Sharma, announced that changes would be made to the UK insolvency laws to help companies "…emerge intact the other side of the COVID-19 pandemic…to give them extra time and space to weather the storm and be ready when the crisis ends whilst ensuring creditors get the best returns possible in the circumstances".
On Saturday 28 March, the Secretary of State for Business Energy and Industrial Strategy announced changes to the insolvency regime with the aim of keeping viable companies trading through the unprecedented challenge of the COVID-19 pandemic.
Key Takeaways |
Since the beginning of March, the UK has seen various high profile company failures as a result (at least in part) of COVID-19. Flybe and Laura Ashley may be the first of many businesses unable to react and adapt to the unprecedented challenges.
Midlothian Council v Raeburn Drilling and Geotechnical Limited & Others
In these unprecedented times, the U.K. government is seeking to preserve U.K. businesses and has already introduced significant measures to achieve that aim, including:
While the next few months may be uncertain for UK business in light of coronavirus (Covid-19), the mantra of "business as usual" will continue to apply to (most) organisations, and this may include carrying out a restructure of it.
What Is a Restructure?
In the context of a company or business, a restructure usually involves making changes in respect of its ownership, structure or assets.
The reasons for carrying out a restructure often include:
Although the position is fast-moving and guidance is expected to be given in due course by the Law Society, it is presently understood that remote video conferencing technology such as Skype or Zoom could be used by a practising solicitor to administer a statutory declaration.