The UK government has just proposed a number of amendments to the Enterprise and Regulatory Reform Bill (currently being considered by Parliament) which will impact on IT suppliers if they become law.
Bill Amendments
In Ebbvale Ltd v Andrew Lawrence Hosking (Trustee in Bankruptcy of Andreas Sofroniou Michaelides) [2013] UKPC 1, the Privy Council upheld a winding-up order against a Bahamian company, even though the principal purpose of the petitioning creditor may have been related to obtaining an advantage in separate proceedings in the United Kingdom.
The Northern Ireland High Court has annulled a bankruptcy order made with procedural irregularities that would have allowed the debtor to escape the much heavier consequences of a debt in the Republic of Ireland.
In the case of Garwood v Bank of Scotland PLC, the English High Court found that a charge that had been mistakenly released should be re-registered over property in the estate of a bankrupt, although this meant that the estate available to unsecured creditors would decrease.
In recent years, regulators from across the professional spectrum have invested heavily in devising new procedures for handling complaints. Often, these new procedures seek to better serve the consumer by being more straightforward and more efficient. Insolvency regulators are the latest to grasp this nettle.
Regulating IPs
Digital Satellite Warranty Cover Limited (“DSWC”) and Michael Sullivan and Bernard Freeman (trading as ‘Satellite Services’) v Financial Services Authority
Summary
A couple of myths dispelled…..
”It’s the company’s problem, not mine.”
Wrong: It’s a surprisingly common misconception that because your business is contained in a limited company, its demise will not affect you. This is simply not correct.
“I work for the shareholders, not the creditors”
This morning we got the news that HMV had gone into administration and last week it was Jessop that went under. HMV’s administrators are still trading from the stores but the administrators of Jessops have ceased trading. Can their landlords expect their rent?
The UK Supreme Court judgment in the conjoined cases of Rubin and another v Eurofinance SA and others and New Cap Reinsurance Corporation (in Liquidation) and another v AE Grant and others [2012] UKSC 46, which provides vital clarification on the effect of foreign insolvency judgments on the UK courts.
Background & Court of Appeal
OSCR report issued following investigation of benefits to employee on wind-up