Key Points

• Provisions of the Civil Procedure Rules apply to applications for an extension of time to apply for rescission of winding up order

• Any such extensions of time should be exceptional and for a very short period

The Facts

Background

It is a criminal offence to continue trading using the name of a company which has gone into insolvent liquidation (a prohibited name).

Judgment

The Court of Appeal has just ruled on a case relating to confiscation orders made against individuals who illegally trade under a prohibited name. In this case, the defendant was given community service, and ordered to pay a confiscation order of £100,000, plus costs. The individual appealed the confiscation order on various grounds.

The court concluded that:

In Mclean v Trustees of the Bankruptcy Estate of Dent [2016] EWHC 2650, the High Court considered the application of the equitable doctrines of marshalling and subrogation in relation to a fixed charge over (among other things) a dog.

A company and partnership borrowed funds from two sources – Barclays Bank and Lady Morrison. Barclays held, among other things, charges over farms owned by individual partners and an agricultural charge under the Agricultural Credits Act 1928 (UK), including a charge over a dog. Lady Morrison only held charges over the farms.

Introduction

Background

In the case of Horton v Henry, the Court of Appeal has recently upheld the High Court’s decision that a Trustee in Bankruptcy cannot compel a bankrupt to draw down his pension rights where the bankrupt has not elected to do so.

The facts

Summary: The Insolvency Rules 2016 will come into force on 6 April 2017. This article highlights some of the main areas of change.

The long awaited Insolvency Rules 2016 (the “2016 Rules”) were laid before Parliament on 25 October 2016, and will come into force on 6 April 2017. The Insolvency Rules 1986 (the “1986 Rules”) and all amending legislation will be repealed. The 2016 Rules aim to:

It is an unfortunate reality that many farming businesses are operating at their limits and are struggling financially. There are several aspects of the insolvency law that should be borne in mind should you run your farm through a limited company that begins to face financial difficulty.

Directors' Duties

Directors' duties under the Companies Act:

In a recent judgment, the Court of Appeal has held that trustees in bankruptcy could not waive legal professional privilege of a bankrupt, even though (i) the trustees in bankruptcy were entitled to take possession of the documents in which the privileged information was contained and (ii) the Insolvency Act 1986 provides generally that trustees in bankruptcy can exercise any power in respect of a bankrupt's property that the bankrupt himself could have exercised: Avonwick Holdings

The recent successful appeal in Brooks and another (Joint Liquidators of Robin Hood Centre plc in liquidation) v Armstrong and another [2016] EWHC 2893 (Ch), [2016] All ER (D) 117 (Nov) has clarified and highlighted the complexities of bringing a wrongful trading claim and the importance of correctly quantifying losses for which directors can be made personally liable under section 214 and/or 246Z of the Insolvency Act 1986 (“the Act”).

Fomento De Construcciones Y Contratas SA v Black Diamond Offshore Ltd (Court of Appeal hearing)

The Court of Appeal has rejected an appeal brought by a leading Spanish company ("FCC") against a first instance decision that an event of default had occurred in respect of a debt instrument.

Background